US trade report flags corruption in Kenya
By Kenneth Mwenda, April 2, 2026The 2026 National Trade Estimate (NTE) Report on Foreign Trade Barriers, released by the US Trade Representative in late March, paints a stark picture of the challenges faced by American companies in Kenya.
In its chapter on Kenya, beginning on page 320, the report is clear:
“Corruption remains a substantial barrier to doing business in Kenya. U.S. firms continue to report challenges competing against foreign firms that are willing to ignore legal standards or engage in bribery and other forms of corruption.”
The report draws directly from feedback provided by US companies operating in the Kenyan market. They describe repeated direct and indirect demands for bribes at multiple levels of government.
“U.S. firms have had limited success bidding on Kenyan government tenders,” the report states.
“Corruption often influences the outcome of public tenders, and many of these tenders are challenged in the courts. Tenders are often not announced in a timely and transparent manner. Foreign firms, some without proven track records, have won government contracts when partnered with well-connected Kenyan firms or individuals.”
Figures show growth, but risks remain
Despite these issues, bilateral trade between the US and Kenya grew in 2025. The US recorded a goods trade surplus of $131.9 million (Ksh17.05 billion), a sharp increase from the previous year. Exports from the US reached $990.8 million (Ksh128.10 billion), while imports stood at $858.9 million (Ksh111.04 billion). Services trade also grew, although the US ran a deficit. Kenya ranks as the 87th largest US goods export market.
“These numbers show that business continues, but corruption raises costs and tilts the field against firms that play by the rules,” the report notes.
The report links corruption closely to Kenya’s “Buy Kenya Build Kenya” policy and the 2016 Public Procurement and Asset Disposal Act. These rules are designed to support domestic industry by giving preference to local firms and requiring offsets such as skills transfer and local employment. In theory, these policies should help Kenyan businesses grow. In practice, US companies say the system often favours well-connected insiders.
“Foreign firms without strong records often succeed only when paired with influential local partners,” the report explains. Court challenges are common, creating delays and uncertainty for all bidders.
In an effort to improve transparency, the government rolled out the electronic government procurement system (e-GP) in 2025, making it mandatory for all national and county entities. However, a High Court ruling on September 8, 2025 suspended this requirement after the Council of Governors argued the rollout was rushed and lacked consultation.
The suspension left a mixed system in place, where paper-based processes and discretion still allow room for influence.
Other barriers add costs
Corruption is not the only obstacle US firms face in Kenya. The report lists several other barriers:
- Inconsistent customs valuation and classification.
- An ineffective pre-arrival processing system.
- A mandatory Certificate of Origin introduced in the 2025 Finance Act, creating extra paperwork as the US does not issue such certificates for non-preferential trade.
- The Pre-Export Verification of Conformity (PVoC) programme, which forces most imports through inspections by a single US firm, adding cost.
- Restrictive import permits for meat, dairy, and poultry that often cite local availability rather than health.
- Overly strict aflatoxin limits on corn, blocking most US shipments without clear scientific justification.
“These rules and requirements raise the cost of doing business and make Kenyan markets less attractive for clean capital,” the report concludes.
What the US expects
The NTE report is part of a broader US push for reciprocal trade deals. Ambassador Jamieson L. Greer, who oversaw the report, has used similar findings in other countries to push for reforms before deeper agreements.
In Kenya’s case, the message is clear: without stronger action against bribery in tenders and rules-based procurement, American firms will remain cautious.
“Kenya’s anti-corruption laws exist on paper, but the government has not implemented them effectively,” the report notes.
Kenyan officials have pointed to automation efforts and new procurement rules, but the report says these steps have not yet delivered the results US companies need. The suspension of mandatory e-GP use shows that transparency requires more than directives; it needs consistent enforcement and political commitment.
Why this matters for Kenya
Corruption affects more than foreign investors. It raises costs for Kenyan taxpayers, crowds out honest local firms, and slows industrial growth. When contracts go to well-connected but less capable firms, public projects such as roads, hospitals, and power installations cost more and deliver less.
US companies, bound by the Foreign Corrupt Practices Act at home, cannot match bribes. Many either walk away or compete at a disadvantage, limiting technology transfer, skills development, and long-term investment in Kenya.
Trade between the two countries has expanded, but the report warns that persistent graft risks capping that potential. To attract high-quality investment, Kenya must move beyond repeated promises and show measurable progress in transparent tendering, faster dispute resolution, and consistent enforcement of existing laws.
The full 2026 NTE Report is available on the US Trade Representative website. Its Kenya section covers tariffs, taxes, technical barriers, services, investment, and state-owned enterprises alongside the corruption assessment. It draws directly from complaints filed by US companies, avoiding naming individuals but highlighting structural problems that are difficult to ignore.