The Office of the United States Trade Representative (USTR) has issued a stark warning in its 2025 trade report, revealing that American businesses operating in Kenya continue to face widespread demands for bribes from both national and county government officials.
Ambassador Jamieson Greeer, in the annual report, cited corruption in government procurement processes as a persistent obstacle that has limited investment and fair competition for US firms in the country.
“Corruption remains a substantial barrier to doing business in Kenya,” the report states. “US 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.”
Procurement-Linked Bribery a Major Concern
According to the USTR, most bribes are demanded during procurement processes, a critical stage where companies seek contracts or tenders. The report accuses Kenya of failing to implement anti-corruption laws effectively, allowing these practices to persist unchecked.
“US firms continue to report direct and indirect requests for bribes from multiple levels of the Kenyan Government,” the report says.
Beyond Corruption: Land and Customs Challenges
The report also highlights other structural issues affecting US investors, including:
- Unclear land ownership laws for undeveloped land, which expose investors to fraud, fake title deeds, and unauthorized land sales.
- Delays at Kenyan Customs, where the report notes an inefficient and overly complex clearance process, despite the existence of a so-called single window system.
“US companies have raised concerns about the length of time required for Kenyan Customs to release shipments, as well as the use of a complex and inefficient process involving uncoordinated offices,” the report adds.
While the process for leasing developed land was described as clear and functional, the same could not be said for undeveloped plots—posing significant risks for new investors.
Implications for US-Kenya Trade Relations
This assessment comes at a time when Kenya is seeking to boost foreign direct investment (FDI) and strengthen economic ties with international partners like the United States. However, such reports may deter potential investors and delay negotiations for trade agreements, such as the ongoing US-Kenya Strategic Trade and Investment Partnership (STIP).
The USTR’s remarks could put pressure on Kenyan authorities to address long-standing governance and transparency issues that have plagued business confidence in the region.
