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BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)
KENYAREPORT
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
©TransparencyInternational-Kenya,2018
Everyefforthasbeenmadetoverifytheaccuracyoftheinformationcontainedinthisreport.
AllinformationwasbelievedtobecorrectasofMay2018.Nevertheless,Transparency
International-Kenyacannotacceptresponsibilityfortheconsequencesoftheuseofthereport's
contentsforotherpurposesorinothercontexts.
BUSINESSINTEGRITYCOUNTRY
AGENDA(BICA)
KENYAREPORT
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
ABOUTBUSINESSINTEGRITYCOUNTRYAGENDA(BICA) .................................................................2
Theroleofbusinessintegrityin�ightingcorruption ...........................................................................2
WhyBICA?................................................................................................................................................3
Methodology ............................................................................................................................................4
Data .......................................................................................................................................................5
Scoring ...................................................................................................................................................7
EXECUTIVESUMMARY
................................................................................................................................. ..8
AssessmentsummaryforthePublicSector
..........................................................................................9
AssessmentsummaryforthePrivateSector
.....................................................................................20
AssessmentsummaryfortheCivilSociety ........................... .............................................................27
Annex1 – NationalAdvisoryGoupMembers........................................................................................ 29
Annex2 - TRACQuestionnaie .................................................................................................................. 30
TABLEOFCONTENTS
01
ACKNOWLEDGEMENT
TransparencyInternationalKenyatakestheopportunitytoappreciateallthosewhowere
involved in the planning, facilitation and production of this report. The various
organizationthatwerepartoftheNationalAdvisoryGroupwhoseguidance,supportand
inputwasinvaluabletotheproject.
Wewouldliketothankourrespondentsfortheirinvaluablecontributionandfeedback,
withoutwhomthereportwouldnothavebeenpossible.
OursincereappreciationtotheTI-KenyaresearchteamcomprisingFidialiceMuthike,
Fridah Kanana and Jackline Were led by Harriet Wachira for the technical input in
collectingthedataandcompilingthereportandKevinMabongaforthereviewofthe
report.WethankSheilaMasindeandSamuelKimeuforfacilitationoftheproductionand
theoveralloversightofthepublication.
WewouldalsoliketothanktheExternalReviewerDr.LanoiMaloyandtheeditorMr.Jerry
Abugafortheexpertreviewandeditingofthereport.
The support and overall guidance by the Transparency International team- Susan
MulcahyandChristineHosack-wasinvaluablefortheproductionofreport.
ThispublicationhasbeengenerouslyfundedbytheSiemensIntegrityInitiative.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
01
ABOUTBUSINESSINTEGRITYCOUNTRYAGENDA(BICA)
Theroleofbusinessintegrityin�ightingcorruption
TheBusiness IntegrityCountryAgenda (BICA) is an initiativeofTransparency
International(TI)developedbothtoenhancenationallevelbusinessintegrityand
tocreateabodyofevidenceonbusinessintegrityinvariouscountries. BICAisa
widely shared agenda for reform and acts as a collectivemomentum towards
enhancedbusinessintegrityamongkeystakeholders.ItisenvisagedthatBICAwill
becomeanimportantreferencepointfor�ightingcorruptioninbusinesspractices
aroundtheglobe,includingKenya.
Theprivatesectorisgenerallyviewedasthesupplysideofcorruption,withthe
makingofcorruptpaymentstogainbusinessadvantages:thereisacommonbelief
that companies that do not engage in corrupt practices may lose business
prospects. The business environment is thus not a level playing �ield but
improving business integrity is a way to create an environment in which all
businessescanprosper.
TransparencyInternationalde�inesbusinessintegrityas“adherencetoglobally-
recognisedethicalstandards;compliancewithboththespiritandletteroflaws
andregulations;andthepromotionofresponsiblecorevaluessuchashonesty,
fairnessandtrustworthiness”.Businessintegritycanpromoteahealthyworking
environment foremployeesandalsofosterastrongercommunityrelationship.
Commitment to business integrity drives companies to proactively pursue the
objectivesandvaluesofavailablelawsratherthanjuststayingwithintheboundsof
thelaw.BICAaimstoestablishcollectiveactionamongthreemainstakeholders:
thepublicsector,privatesectorandcivilsociety.Thisisre�lectedintheBICA
frameworkillustratedinFigure1.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
02
Source:TransparencyInternational
The BICA Framework illustrates the dynamism of collective efforts towards
developingabusinessintegrityenvironmentamongthethreemainstakeholders.
Althoughthefocusistheprivatesector,inordertofostersoundbusinessintegrity,
theactiveparticipationofboth thepublic sectorandcivil society isnecessary.
Overall,thereare15thematicareasand51indicatorsforassessmentofthethree
stakeholdergroups.
WhyBICA?
BICAisthe�irstreporttoanalysetheoverallbusinessintegrityenvironmentina
givencountry—inthiscase–Kenya-bylookingattheeffortsofallstakeholders.
Furthermore,itisthe�irstcomprehensiveassessmentaimedatreducingprivate
sectorcorruption.Thereportcreatesabodyofevidenceandactsasabenchmark
to assess future progress in private sector anti-corruption movements.
Additionally,BICAinformsacollectiveactionagendathatwillbeadoptedbasedon
the �indings of the report. TheBICA assessment is designed to encourage all
stakeholderstousethe�indingsandcollaboratetoimprovebusinessintegrityand
leveltheplaying�ieldforeveryone.
Tax and Customs
Figure1.TransparencyInternational-Supplement1BICAFramework
TransparencyInternational-Supplement1BICAFramework
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
03
1
Methodology
Thethreemainstakeholdergroupsareassessedbasedonthematicareas.Forthe
publicsectorthereareninethematicareasorassessmentcategories:prohibiting
bribery of public of�icials; prohibiting commercial bribery; prohibiting the
laundering of the proceeds of crime; prohibiting collusion; whistleblowing;
accounting, auditing and disclosure; prohibiting undue in�luence; public
procurement;andtaxesandcustoms.Eachofthesethematicareashasfromthree
tosixkeyindicators,eachwithascoringquestion.Thefocusofthepublicsector
assessment is to determine to what extent the country's laws and practices
prevent,reduceand/orrespondtocorruptionintheprivatesector.
For the private sector there are �ive thematic areas or assessment categories:
integrity management; auditing and assurance; transparency and disclosure;
stakeholderengagement;andboardofdirectors.Likewise,eachofthesethematic
areashasfromthreetofourindicators,eachwithitsscoringquestion.Thefocusof
theprivatesectorassessmentistodeterminetowhatextentprivatesectorefforts
prevent,reduceand/orrespondtocorruptioninthissector.
Finally,civilsocietyhasjustonethematicareaorassessmentcategory:broader
checks and balances. This thematic area has three indicators with a scoring
questionforeach.Thefocusofcivilsocietyassessmentistodeterminetowhat
extentcivilsocietyeffortsprevent,reduceand/orrespondtocorruptioninthe
privatesector.
The BICA adopts a multi-stakeholder approach in order to elicit a wealth of
information and diverse views that may otherwise not be used or even be
unknown.TothisendaNationalAdvisoryGroup(NAG)wasestablishedat the
outsetoftheassessment.TheNAGfortheKenyaBICAcomprisedofninemembers
from each major stakeholder group, complemented by other national and
internationalexperts.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
04
ThemainareasofresponsibilityoftheNAGduringtheBICAAssessmentwere:
Ÿ �Reviewing the assessment framework and proposal of adaptations to
re�lectthenationalcontext
Ÿ �Assistingtheexternalresearcherindatacollectionandveri�ication
Ÿ Reviewingandvalidatingscoringofindicators
Ÿ Proposingrecommendationsforrelevantstakeholdergroups
Ÿ Supportingdisseminationofassessmentresultsafterpublication
th thTheNAGmet twice,on12 July2017and26 March2018,and the full listof
membersisavailableinANNEX1.
Data
The data was collected and validated through a comprehensive process that
included:
· DeskResearch:Themaindatasourcefortheresearchwasdeskresearchof
bothprimaryandsecondarysources.Dataincludedinformationfromlaws,
reportsfromvariousoversightinstitutionsandlawenforcementagencies,
international institutions, local NGOs, private companies, and media
publications.Thiswasconducted inAugustandSeptemberof2017and
additionaldataupdatedinJanuaryandFebruary2018.
· Fortheprivatesectorassessment'sindicatorsoncorporatetransparency
anddisclosure,anadaptationofTI'sTransparencyinCorporateReporting
(TRAC)methodologywasusedasabasisforcollectingtherelevantdata.
Thequestionnaireusedcanbe found inANNEX2. Informationonanti-
corruptionprogrammes,�inancialdisclosureandstakeholderengagement
among others was obtained by searching the companies' websites for
policydocuments,�inancialreports,activityreports,CSRandsustainability
reportsaswellasanyother informationrelevanttothestudy. Datafor
TRACwascollectedinOctober2017.
06
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
05
2
Ÿ ExpertInterviews:Wheretherewasinsuf�icientsecondarydataavailable
to attribute a score, researchers conducted expert interviews from the
public sector, private sector and civil society. These were conducted
betweenAugustandOctober2017.
Ÿ Draft of the scores: Following the research, expert interviews and the
references for each sub-indicator, TI Kenya generated the �irst draft of
scoresalongwiththecommentsrelatedtoeachindicatorandsub-indicator.
Theresearchersbasedtheproposedscoresontheirholisticanalysisofthe
aggregateddata.
Ÿ FeedbackfromNAG:TIKenyasharedtheindicatorscoresandcomments
withNAGmemberstovalidatetheBICAreportandtoensuretheobjectivity
of theresults.Threeworkshopswereheld todiscusseach indicatorand
validate each score. Some of the scores were modi�ied based on the
recommendationsandfeedbackofNAGmembers.
· Finalscoresattribution:Researchersrevisedthescoresandcomments
based on NAG input and �inalised the report. An independent expert
reviewereditedandprovidedadditionalcommentsonthereport.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
06
Scoring
AtthecoreoftheBICAassessmentframeworkareindicatorswhichtranslatethe
(largely)qualitative information intoaquantitative score (ona �ive-point scale
withtheoptionsbeing0,25,50,75and100).Eachindicatorhasanoverall“scoring
question”andmorespeci�icassessmentcriteria.
Inordertofacilitatecomprehension,thescoringresultsarevisualisedintraf�ic
signalcolours.Theindividualindicatorresultsperthematicareaareaggregatedto
anoverall thematicarea result,usinga simpleaveragecalculation. Thus,each
indicatorwithinathematicareaisweightedequally.
Indicator Qualitative Judgement Visualisation
0
The
scoring
question
is
answered,
“No,
not at all”. The
evidence
collected
for
the
assessment criteria
indicates
that
the
requirements
are
not
met
at
all.
Red
25
The
scoring
question
is
answered,
“To
a
limited
extent”.
The
evidence
collected
for
the
assessment
criteria
indicates
that
a
few
of
the
requirements
are
fully
met;
or
that
many
requirements
are
met
to
a
limited
extent.
Red-Yellow
50
The
scoring
question
is
answered,
“To
some
extent”.
The
evidence
collected
for
the
assessment
criteria
indicates
that
roughly
half
of
the
requirements
are
met;
or
that
most
requirements
are
met
to
some
extent.
Yellow
75
The
scoring
question
is
answered,
“Largely”.
The
evidence
collected
for
the
assessment
criteria
indicates
that
many
of
the
requirements
are
met
or
most requirements are met to a great extent.
Yellow-Green
100 The scoring question is answered, “Yes, fully”. The
evidence collected for the assessment criteria
indicates that (almost) all of the requirements are
met.
Green
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
07
Again,theoverallthematicareascoreisexpressedthroughthetraf�iclightanalogy,
usingthecoloursymbolwhichcorrespondsclosesttotheaggregatedscore.
Theideaofthescoringisnottocastanegativelightonstakeholdersorsuggestthat
theylackwillingnesstoimprovethebusinessintegrityinKenya.Onthecontrary,
thepurposeofscoring is to launchcontinueddiscussionandengagementwith
relevantstakeholdersandtohighlightwheremoreeffortsareneededintermsof
lawenforcementandlegislativeinitiatives.Ascoringmetriccreatesbenchmarksto
assesscontinuedprogress,shouldTIKenyaconductafollow-upBICAassessment
infuture.
EXECUTIVEASSESSMENTSUMMARY
TheBICAassessmentexaminesthreemainstakeholders:publicsector,business
sectorandcivilsociety,allofwhichareinstrumentalinbuildingastrongbusiness
integrityenvironment.Thestakeholdersareanalysedusing15thematicareasand
51 indicators. In this summary, we present the key �indings for the three
stakeholdergroups.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
08
AssessmentsummaryforthePublicSector
Thepublicsectorreviewed31indicatorscoveringninethematicareasasseeninthegraph
below.
Thematicarea:Prohibiting briberyofpublicof�icials
1.1.1
Lawsprohibitingbriberyofpublicof�icials
1.1.2 Enforcementoflawsprohibitingbriberyofpublicof�icials
1.1.3 Capacitiestoenforcelawsprohibitingbriberyofpublicof�icials
Thematicarea:Prohibitingcommercialbribery
1.2.1 Lawsprohibitingcommercialbribery
1.2.2 Enforcementoflawsprohibitingbriberyofpublicof�icials
1.2.3 Capacitiestoenforcelawsprohibitingcommercialbribery
Thematicarea:Prohibitinglaunderingofproceedsofcrime
1.3.1 Lawsprohibitinglaunderingofproceedsofcrime
1.3.2 Enforcementoflawsprohibitinglaunderingofproceedsofcrime
1.3.3 Capacitiestoenforcelawsprohibitinglaunderingproceedsof
Crime
Thematicarea:ProhibitingCollusion
1.4.1 Lawsprohibitingcollusion
1.4.2 Enforcementoflawsprohibitingcollusion
1.4.3 Capacitiestoenforcelawsprohibitingcollusion
Thematicarea:Whistleblowing
1.5.1 Whistleblowerlaws
1.5.2 Enforcementofwhistleblower laws
1.6.1 Accountingandauditingstandards
1.6.2 Enforcementofaccountingandauditingstandards
1.6.3 Professionalserviceproviders
1.6.4 Bene�icialownership
Thematicarea:Accounting,auditinganddisclosure
Thematicarea:Prohibitingunduein�luence
1.7.1 Lawsonpoliticalcontributions
1.7.2 Enforcementandpublicdisclosureonpoliticalcontributions
1.7.3 Lawsonlobbying
1.7.4 Enforcementandpublicdisclosureonlobbying
1.7.5 Lawsonothercon�lictsofinterest
1.7.6 Enforcementandpublicdisclosureofothercon�lictsofinterest
Thematicarea:PublicProcurement
1.8.1 OperatingEnvironment
1.8.2 Integrityofcontractingauthorities
1.8.3 Externalsafeguards
1.8.4 Regulationsfortheprivatesector
Thematicarea:Taxesandcustoms
Operatingenvironment
1.9.2 Integrityoftaxadministrationauthorities
1.9.3 Externalsafeguards
25 50 75 100
�igure2:Assessmentscoresforpublicsectors
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
09
1.9.1
0
Theassessment�indsthattheAnti-corruptionandEconomicCrimesAct,2003
(ACECA) and theBriberyAct 2016 contain suf�icient provisions thatprohibit
passiveandactivebriberyofpublicandforeignof�icials.Additionally,these
lawshave speci�icprovisions thatprohibit facilitationpaymentsand includea
broad category of what constitutes undue advantage to include money,
employment,etc.Theassessmenthowevernotesthatthereisnoexplicitprovision
prohibitingbribesasataxdeductibleitem.
The assessment notes that there is some active enforcement of the laws
prohibiting bribery of public of�icials by the Ethics and Anti-Corruption
Commission(EACC)andtheOf�iceoftheDirectorofPublicProsecutions(ODPP)
butundertheACECA.Thisthereforemeansthatchargespreferredagainstaccused
personsarecurrentlyreported(inODPPandEACCreports)aseconomiccrimes
andnotspeci�icallybriberycases.TheestablishmentoftheAnti-corruptionand
EconomicCrimesdivisionattheJudiciaryhasalsoaidedintheenforcementofthe
anti-corruptionlaws.
TheEACCandtheODPPlistlimitedcapacity(Inadequate(humanand�inancial
resources) as a key challenge to execute their mandate; investigation and
prosecution respectively. They also particularly note the arduous process
associatedwithMutualLegalAssistance(MLA)asanotherfactoraffectingproper
enforcement.
TheBriberyAct, 2016prohibits passive and active commercial bribery. The
enforcementoftheActontheseprovisionsisyettostartastherehavebeenno
casesinvestigatedorprosecutedsofar. Thedevelopmentofregulationstoboost
implementationandenforcementisongoing.
CapacitiesoftheEACCandtheODPPforhandlingcommercialbriberycases
remainlowastheyareyettoadjusttheirresourcesaccordingly.Theassessment
notesthattheBriberyActsigni�icantlyexpandsthemandateoftheEACCtofocus
on the private sector. TheODPP reportsmaking efforts to improve its human
resourcecapacitytohandleanti-corruptionmattersingeneral.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
10
TheProceedsofCrimeandAntiMoneyLaunderingAct(POCAMLA)2009contains
provisions that prohibit launderingofproceedsof crime. This includes the
concealmentordisguiseofpropertywithknowledgethatitwasproceedsofcrime;
acquisitionoruseofpropertyknowingthatthepropertyistheproceedofcrimeas
wellasassociationorparticipationinaconspiracytofacilitate,abetorcounselin
theconcealmentoracquisitionofproceedsofcrime.
TheActdoesnot,however,haveprovisionsthatprohibittheconversionortransfer
ofproperty,knowingthatsuchpropertyistheproceedsofcrime,forthepurpose
ofconcealingordisguisingtheillicitoriginoftheproperty.
TheassessmentnotesthattheFinancialReportingCentre(FRC)hastheprimary
mandate to enforce POCAMLA with the assistance of various reporting
institutionsandsupervisorybodies.Itishowevernotpossibletoestablishtowhat
extentthelawhasbeingenforced,norestablishthecapacityoftheFRCasithasn't
producedanyannualreportsinceitsformationin2012.
TheCompetitionAct,2010istheprimarylawthatprohibitscollusioninKenya.
TheAct contains key provisions that prohibitmaking collusive tenders, �ixing
prices,sharingofmarketsbyallocatingcustomers,suppliersetc.,andestablishing
outputrestrictionquotas.
Enforcement of the Act is primarily the responsibility of the Competition
Authority.TheAuthority,initsannualreports,hasindicatedactiveenforcementof
collusion cases. Additionally, it has launched a leniency programme that is
currentlybeingrolledouttoimprovecompliancetotheAct.
TheAuthorityreportshavingaworkingrelationshipwiththeCommonMarketfor
EasternandSouthernAfrica(COMESA)CompetitionCommissionandisinvolved
inactivitiesthataimtoseetheEACCompetitionCommissionoperational.This
booststheirenforcementcapacityacrossmemberstates.TheAuthorityreportsa
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
11
relativelysteadyallocationofresourcesfromtheexchequerthatallowsthemto
executetheirmandatewithminimalchallenges.
Theassessmentnotesthatthecountrydoesnothaveanindividualwhistleblower
protectionlaw.Therearehoweverprovisionsinotherpiecesoflegislationsuchas
the Bribery Act, 2016 that protect whistleblowers in the public and private
spheres.TheBriberyAct,however,hasaspeci�icde�initionofawhistlebloweras
onewhomakesareporttotheCommissionorthelawenforcementagencieson
actsofbriberyorotherformsofbribery.
TheAct,whileitprovidesforpenaltiestothosewhoareresponsibleforretaliation
towhistleblowers,itdoesnotprovideforremediesforwhistleblowersthatsuffer
detrimentalactionasaresultofwhistleblowing.Additionally,theactrequiresall
lawenforcementagenciestoputupmeasurestoprotectwhistleblowersbutdoes
notrequireothergovernmentagenciesorprivateentitiestodothesame.
Theassessmenthowevernotesthatlistedcompaniesrequiretheboardtoensure
thatacompanyhasaWhistleblowerPolicyandaresubjecttotheprovisionsofthe
CodeofCorporateGovernancePractices for IssuersofSecurities to thePublic,
2015.There ishowever, limited informationon internaldisclosureprocedures
usedbypublicandprivateorganisationstoadequatelyprotectemployeeswho
reportwrongdoing.
Despitethefactthereisnoindependentwhistleblowerinvestigation/complaints
authority or tribunal, there are government agencies such asKenyaRevenue
Authority (KRA) and EACC that receive and investigate reports from
whistleblowers.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
12
TheCompaniesAct,2015containsprovisionsthatrequirecompaniestoprepare
annual�inancialstatementsthatadheretoprescribedaccountingand�inancial
standards,assetbytheInstituteofCerti�iedPublicAccountantsKenya(ICPAK).
Additionally,theActrequiresacompanytokeepaccuratebooksofaccountsatthe
company'sregisteredof�iceforaminimumofsevenyears.TheActfurtherrequires
only listed companies to have external audits according to internationally
recognised standards and for these companies to publish their external audit
reportsannually.TheAct,however,doesnotrequirecompaniestosetupinternal
controlsystemssuchasinternalauditfunctions.
Theassessmentnotesthatthereisagapinenforcementofthesestandardsas
ICPAKcanonlyensureenforcementamongitsmembership;ICPAK'smembership
isnotrequiredofallthatserveasaccountingprofessionalsinvariouscompaniesin
theprivatesector.Additionally,theassessmentnotesthatwhiletherearelegal
requirementsforprofessionalserviceproviderssuchasauditors,accountants
and providers of rating or related advisory services to be licensed, there is
signi�icantproportionofpractitionersinthemarketwhoarenotlicensed.
Thisthereforeposesachallengetoprofessionaloversightbodieswhosereach
onlyextendstotheirlicensedmembership.Independenceandautonomyofthe
service providers ismostly guaranteed through their ethical and professional
standardsasthereisnolegalorpolicyframeworksthatspeakstothis.
The Assessment also notes that annual reports submitted to the Business
RegistrationServiceandannualreturnssubmittedtotheKRAarenotreviewedfor
compliancetoaccountingandauditingstandards.Additionally,thereisnolegalor
policyframeworkthatwouldgrantICPAKaccesstothesereportsforreview.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
13
TheCompaniesAct,2015outlinespenaltiesandsanctionsfordirectorsthatfailto
prepare annual �inancial statements as per the requirements. Institutions in
charge of enforcement such as The Central Bank of Kenya (CBK), the Capital
MarketsAuthority(CMA)andICPAKdonotnecessarilypublishreportsthatshow
enforcementactionsanddecisionstakeninindividualcases,includingaccounting
matters.
TheAugust2017amendmenttotheCompaniesAct,2015broughtinprovisions
onbene�icialownership.Theamendmentsincludeade�initionofabene�icial
ownerandrequirementstoprovideinformationonbene�icialownersinaddition
tothatofdirectorsandmembers.Theinformationonbene�icialownersshouldbe
includedinthecompanyregister–keptatthecompany'sregisteredaddressand
lodged at the Registrar of Companies. The Act neither penalises willful
misrepresentationofinformationonbene�icialownershipnorfailuretodisclose
nomineesfrontingdirectorsorshareholders.
TheElectionOffencesAct,2016andthePoliticalPartiesAct,2011haveprovisions
thatprohibituseofpublicresourcesforthepurposeofcampaigningduringan
electionorareferendumbyanypersonorreferendumcommittee. Additionally,
thePoliticalPartiesAct,2011providesforamechanismthatdeterminesequitable
andtransparentpublicfundingtopoliticalparties.
TheActsfurtherprovideforlawfulsourcesoffundingtopoliticalpartiestoinclude
individualsandcorporates,with limitsputoncorporateanddonations froma
singlesource.Anonymouscontributionsarebanned.Politicalpartiesarerequired
tokeeprecordsoftheirsourcesoffunding(amongotherdetailsofthesame)as
wellaspublishthepartiesauditedaccounts.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
14
The Registrar of Political Parties and the Independent Electoral Boundaries
Commission (IEBC) have the mandate to enforce laws on political
contributions.TheassessmentnotesthattheRegistrarreportedfullcompliance
frompoliticalpartiesinthelastgeneralelectionsandassuchhadnotimposedany
sanctionsadministrativeorotherwiseonanypoliticalparty.TheIEBCprepared
andgazettedregulationsoncampaign�inancingbuttheyweresuspendedbythe
Nationalassembly.
ThereiscurrentlynolegalorpolicyframeworkinKenyathatregulateslobbying
andassuchnorequirementsoncompaniestodisclosetheirlobbyingactivities.
ThePublicOf�icerEthicsAct,2003andLeadershipandIntegrityAct,2003arethe
twomain laws thatmanagecon�lictsof interestsbetweenpublicandprivate
sector.Publicentitiesarerequiredtokeeparegisterofcon�lictofinterestwhere
publicof�icersandstateof�icersarerequiredtodeclarecon�lictsofinterest(gifts,
bene�its,hospitalityetc.)onneedbasis.Whilethesedeclarationsarenotmade
public,publicentitiesarerequiredtosubmitannualreportstotheEACConthe
giftstheyhavereceived,thosetheyhavedisposedofforintendtodisposeoff
. Further, the twoActs prohibit state andpublic of�icers from taking up other
gainfulemployment.Thelawsdonot,however,putawaitingperiodforelected
publicof�icialsorseniorcivilservantsintendingto movetoprivatesectororfor
corporate executives intending tomove senior public of�ices and positions in
government.
Theassessmentnotesthatinformationregardingpublictendersismadepublicly
availableongovernmentwebsitesnationwidecirculationnewspapersandother
availablepublicspaces.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
15
Thecountryadoptedadigitalsystemforuseinpublic�inancemanagement,the
IntegratedFinancialManagement Information System (IFMIS).However, there
have been reported challenges in the roll out of the system especially at the
counties. Additionally, thePublic Procurement and Asset Disposal Act, 2015
outlinesproceduresforvarioustypesofprocurement,includingthosethatrequire
competitivebiddingasperthe�inancialthresholdoutlined.
TheassessmentnotesthattheActrequiresprospectivebidderstodeclarethat
theyor their sub-contractorshaven'tbeenbarred fromparticipating inpublic
procurementproceedings.Theyarefurthersupposedtodeclarethattheywillnot
engageinanyfraudulentorcorruptpractice.Otherthanthesedeclarations,there
arenootheranti-corruptionrequirementsmadeonbiddingentities toqualify
themtorespondtogovernmenttenders.Conversely,therearenoincentivesor
advantages to prospective bidders that have effective anti-corruption
programmesinplace.
Contractingauthorities,ontheotherhandare,subjecttoprovisionsofthePublic
Of�icersEthics,Act2003andtheLeadershipandIntegrityAct,2013withregards
to setting integrity management initiatives. Such initiatives include wealth
declaration by public of�icers, which is done once every two years. These
declarationsarehowevernotmadepublicbutcanbeaccessedthroughprocedures
laiddownintheActs.Additionally,theEACCprovidesadvisoryservicesonanti-
corruptionandmainstreamingofthesametovariousgovernmentagencies.
ThePublicProcurementReviewBoard(PPRB)offersaggrievedbiddersachannel
through which they can appeal the outcome of a procurement process. The
decisionsofthereviewboardareavailableonthePublicProcurementRegulatory
Authority (PPRA) website. Additionally, the PPRA is charged with the
responsibilityof receivingand investigatingcomplaints thatarenot subjectof
administrative review on procurement and asset disposal proceedings. They
however neither have a dedicated line nor mechanism that receives such
complaints nor a voluntary disclosure programme that allows companies to
reportoncorruption.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
16
DespiteprovisionsintheActforcooperationbetweenPPRAandnon-stateactors
toimprovethepublicprocurementsystems,notmuchhasbeendoneinthisregard
yet.
The Kenya Revenue Authority has the primary responsibility of tax
administrationinthecountry.Theyhavestandardisedtheprocessandmethodof
collectingandpayingtaxesdeterminedbytheNationalTreasuryandMinistryof
Planning. The processes are digitised to a large extent with application for
PersonalIdenti�icationNumber(PIN)numbersforindividualandcorporatetax
payersaswellaspaymentand�ilingoftaxreturnsbeingdoneonline.Information
onnumberandleveloftaxrates,criteriafortaxexemptionsisreadilyavailable
online. Information regarding tax deals with national and multi-national
companiesismanagedbytheNationalTreasury.
KRAhasanintelligenceandstrategicoperationsdepartmentwiththemandateof
prevention,detectionandinvestigationofcorruptionandunethicalconductinthe
Authority. They are guided by the KRA anti-corruption policy and a code of
conductthatallemployeessignandareregularlytrainedon.Theinternalaudit
departmentisalsoresponsibleforinvestigationoffraudandfraudrelatedcasesat
theAuthorityand isrelatively independent.Reportsof their investigationsare
howevernotmadepublic.Additionally,theAuthorityhasawhistleblowerpolicy
thatprovidesforprotectionofwhistleblowerscontactingtheauthority.
Intermsofexternalsafeguards,theassessmentnotesthatKRAissubjecttoaudit
bytheOf�iceoftheAuditorGeneral(OAG)whoseindependenceisguaranteedby
theConstitutionandthePublicAuditAct,2015.TheAuditorGeneralmakesthe
resultsoftheauditsavailableonitswebsite.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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KRAoperatesa complaint and information center that receives complaintson
corruptionandotherrelatedoperationalmattersoftheauthorityviaphoneand
email. TheAuthoritydoesnothoweverhaveavoluntarydisclosureprogramme
that allows companies to self-report on corruption cases in exchange for
mitigationsanctions.Theyinsteadhaveaninformerrewardschemethatallows
membersofthepublictoreportorprovideinformationonunpaidtaxesandgeta
percentageoftherecoveredamounts.
Theassessmentthereforerecommendsasfollows:
Recommendation
Agency
1.
EstablishapolicyorLegalframeworkfortheMultiAgencyTeam
(MAT)toconcretisecollaborativeeffortsoftheagenciesinvolved.
Thiswillimprovetherateofresolution(investigation,
prosecutionandconviction)ofcorruptioncases.
Attorney
General
2. Fasttracktheestablishmentofapublicregistershowing
bene�icialownershipofcompanies.
BusinessRegistrationService
3.
Expeditethedevelopmentofregulationstoaidinthefull
implementationoftheBriberyAct.
EACC/ODPP
4.
AdjustthebudgetaryallocationtoEACCandODPPtoallowthem
expandaccordinglytoaccommodatetheadditionalmandate
broughtaboutbytheenactmentoftheBriberyAct,2016.
EACC,ODPP
,NationalTreasury
5.
FasttracktheenactmentofaWhistleblower ProtectionLawto
enhancethe�ightagainstcorruption.
AttorneyGeneral
6.
PPRAshouldsetupadedicatedcorruptionreportingmechanism
toreceiveallprocurementrelatedcorruptionreports.
PPRA
Intheshortterm:
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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1.
AmendtheBriberyAct,2016:
a.
To
anexpressprohibitionofdeductibilityofbribesfor
taxpurposes.
EACC,
KRA
b.
Toincludeprovisionsforallgovernmententitiestoputinplacewhistleblowerprotectionmechanismsaspartoftheiranti-corruptionprogramme.
EACC,KEPSA,KAM
c.
To include
remedyforwhistleblowersthatsuffer
reprisalasaresultoftheiractions.
EACC,AttorneyGeneral
2. AmendtheCompaniesAct,2015includecrucialaspectsofbene�icialownershipdisclosureparticularly criminalisation ofwillfulmisrepresentationofbene�icialownershipinformation.
BusinessRegistrationService
3.
AmendtheAccountants ActtoensuremandatoryregistrationofpracticingaccountingprofessionalstoICPAKtoensureproperapplicationandenforcementof accountingandauditingstandardsinKenya
ICPAK,AttorneyGeneral
Recommendation
Agency
IntheMidterm:
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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1. EnactlegislationtoregulatelobbyinginKenya.
AttorneyGeneral,KEPSA,KAM
2.
The PublicProcurementRegulatoryAuthorityshouldincorporateintegritypactsasaccountabilitymeasuresintheprocurementprocess.Thiscanbedonewiththehelpofthecivilsocietysectorto actualise provisionsofsection9 (1q)ofthePublicProcurement andAssetDisposalAct(PPDA) 2015. Additionally,regulationsforthePPDA2015Actshouldincludeaclausecompellingprocuringentitiestoincludecivilsociety organisations oversightduringtheprocurementprocessforprocurementaboveacertainthreshold.
PPRA
3.
Toenhanceaccountabilityandintegrityofbiddingentities,thePPDA2015shouldbeamendedtoincludepreferenceorcertainadvantagesforcompanieswitheffectiveanti -corruptionprogrammes
PPRA,NationalTreasury,KEPSA/KAM
Recommendation
Agency
Inthelongterm:
AssessmentsummaryforthePrivateSector
Theassessmentontheprivatesectorfocusesontheanti-corruptionefforts
initiatedbythebusinesscommunitytopromotebusinessintegrity.Itassesses5
thematicareasand17indicators.
Belowisagraphicalrepresentationofthekey�indingsofthethematicareas:
Thema�c area: Integrity Management
Thema�c area: Audi�ng and assurance
Thema�c area: Transparency and disclosure
2.5.1 Oversight
2.5.2 Execu�ve remunera�on
2.5.3 Conflict of interest
Thema�c area: Board of directors
25 50 75 100
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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2.4.1 Stakeholder rela�ons
2.4.2 Business driven an� corrup�on ini�a�ves
2.4.3 Business associa�ons
Thema�c area: Stakeholder engagement
2.3.1 Disclosure of an�-corrup�on programs
2.3.2 Disclosure on organiza�onal structures
2.3.3Disclosure of key financial data on a country
by country basis
2.3.4 Addi�onal disclosure
2.2.1 Internal control and monitoring structures
2.2.2 External Audit
2.2.3 Independent assurance
2.1.1 Provision of Policies
2.1.2 implementa�on of prac�ces
2.1.3 Whistleblowing
2.1.4 Business partner management
�igure3:Assessmentscoresforprivatesector
0
The assessment notes that provision of anti-corruption policies among
companiesisnowmandatoryafterenactmentoftheBriberyAct,2016.Priorto
that,onlyspeci�iccategoriesofcompanieswererequiredtohaveanti-corruption
policies or programmes; companies listed at the Nairobi Securities Exchange
(NSE),companiesregulatedbytheCentralBankofKenya(CBK)andthosethatare
signatoriestotheCodeofEthicsforBusinessesinKenya.
There are no guidelines or minimum requirements for the content of anti-
corruptionpoliciesorprogrammes.TheBriberyAct2016requirescompaniesto
implementanti-corruptionprogrammesaccordingtosizeandriskwhiletheCBK
andthecodeofethicsforprivatebusinesshasnospeci�ications.Allcategoriesof
polices outlined above require adherence across all levels and areas of the
company.
ForcompanieslistedatthestockexchangeandthoseregulatedbytheCBK,the
boardhastheresponsibilitytoensurethattheethicsandanti-corruptionpolicies
areadoptedandimplementedwithinthecompany.
There is no standard way in which the companies implement their anti-
corruption programmes. Some programmes contain training aspects and
feedbackorreviewmechanismstoensureeffectiveness.Forinstance,companies
listed at the stock exchange arehowever required tohave annual governance
auditswhiletheothertwocodesdonothavesucharequirement.Onlycompanies
listedatthestockexchangearerequiredtopublishtheircodeswhilefortheothers
itisdiscretionary.
TheBriberyAct,2016doesnotrequirecompaniestoputinplacewhistleblower
protectionmechanisms;onlylawenforcementagenciesarerequiredtodoso.
The Act has provisions that protect whistleblowers from retaliation from
employersbutdoesnotofferremedialactionforthosethatsufferdetrimental
actionasaresultofwhistleblowing.Companieslistedatthestockexchangeare
requiredtohaveawhistleblowerpolicybutinformationonimplementationofthis
waslimited.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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Intermsofapplyinganti-corruptionprogrammestorelevantbusinesspartners,
signatories to the code of conduct, at the integrating and reporting level are
encouragedtousetheirin�luencetoencourageothercompaniestosignontothe
codeTheothertwocodesdonothavesimilarprovisions.
The assessment notes that there are legal and policy provisions that require
companies to set up and maintain internal controls over accounting, record
keepingandotherbusinessprocesses.Theseincludekeepingaccuratebooksand
recordsthatdocumentall�inancialtransactions.However,onlylistedcompanies
arerequiredtohaveinternalauditfunctionswhiletherearenolegalprovisionsfor
non-listedcompaniestoestablishthesame.
TheAuditcommitteesoflistedcompanieshavethemandatetoreviewthe
effectiveness of the internal audit function as well as ensure that
recommendationsfromtheinternalauditreportsareimplemented.TheBoardof
Directorsisresponsibleforpreparingandapprovinga�inancialstatementofa
company.
The Companies Act, 2015 requires companies to conduct annual external
audits.Theseshouldbeconductedbylicensedauditors.Forlistedcompany,the
auditorsshouldbeingoodstandingwithInstituteofCerti�iedPublicAccountancy
ofKenya(ICPAK).Theexternalauditorsshouldbeindependent,notemployeesor
board members and their families. Additionally, external auditors of listed
companies shouldbe rotatedevery six tonineyears. External audits reports
shouldbepresentedasanannextoacompany'sannualstatutory�inancialreport,
be sent out tomembers of the company and in case of public companies, be
presentedatanannualgeneralmeeting.
Companies listed at the stock exchange are required to undergo an annual
governanceaudit,conductedbypractitionerslicensedbytheInstituteofCerti�ied
Public Secretaries of Kenya (ICPSK). There are no requirements to publicly
disclosetheassuranceopinions.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
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Theassessmentreviewedtransparencyanddisclosurepatternsof35outof
64 companies listed at theNairobi Securities Exchange. These companies
represent a category of companies with stringent regulations and statutory
obligations from the Companies Act,2015 and the Capital Markets Authority
(CMA).
The assessment notes that anti-corruption programmes were the least
discloseditemsintheassessment.Halfofthecompaniesassessed(18outof35)
didnotdiscloseanyinformationontheiranti-corruptionprogrammeswhile34%
of the companies (12 out of 35) had a score of between1 and50%with the
remaining �ive scoringmore than50%.Noneof thecompaniesassessedgota
perfectscore.
In terms of disclosure of organisational structures, 20% of the companies
assessed (7 out of 35) did not disclose any information regarding their
subsidiaries.Thisincludedcompaniesthatdidnotstatewhetherornottheyhad
anysubsidiaries.Majority(74%)ofthecompaniesassessedobtainedascoreof
morethan50%with20%ofthecompaniesgettingaperfectscore.
Intermsofdisclosuresofkey�inancialdataoncountry-by-countrybasis,44%of
thecompaniesassessedscored50%andabovewhile22%scored25%andathird
ofthecompaniesscoredzero.Noneofthesecompaniesgotaperfectscore.
The assessment notes that there are initiativeswithin the private sector that
encourage sustainability of �inancially sound enterprises. These are usually
multi-stakeholder- led initiatives, bringing together business member
organisationsandregulators. TheseincludeawardssuchastheTop100Mid-
Sized Companies and FiRE Awards. It is howeverworth noting that in these
initiatives, anti-corruption issues take little or no prominence. Various
stakeholdersinvolvedincorporategovernanceprocesseshaveaccesstorelevant
information,butthisislargelyguidedbybestpracticeandstatutoryinformation.
3.Disclosureondetailsofananticorruptionprogramsuchasvariouspolicies(giftsandhospitality,prohibitingfacilitationpayments,politicalcontributions),acodeofconductthatappliestoemployees,boardandexternalstakeholdersamongotherelementsofananticorruptionprogram.4.Disclosureonsubsidiaries(Consolidatedandnon-fullyconsolidated),theirpercentages,countriesofoperationandincorporation.5.Disclosureonrevenues,capitalexpenditure,pre-taxincome,incometaxandcommunitycontribution.
06
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
23
3
4
5
OtherprivatesectorledinitiativesincludeaCodeofEthicsforBusinessinKenya
thatwasspearheadedbyapexbusinessassociationsKAM,KEPSAandUNGlobal
Compact Kenya. This is a voluntary initiative that has 700 signatories so far.
Membersthathavebeenimplementingitforafewyearsaretakingleadpromoting
thebene�itsofsigningontothecodeamongothermembers.Theprivatesector
hasalsocollaboratedwithgovernmentandcivilsocietyinvariousforumssuchas
theKenyaLeadershipIntegrityForum.
Therearealsoinitiativesthatarespearheadedatthesectorallevel.Forinstance,
thebankingandmanufacturingsectorsprovidesupporttomembersatsectorand
nationallevelinformoftrainingandprovisionofrelevantmaterials.
TheCompaniesAct,2015;theCodeofCorporateGovernancePracticesforIssuers
ofSecuritiestothePublic2015andCBKPrudentialguidelineschargetheboard
with the responsibility of shaping and enforcing a company's governance
practices. The board is also responsible for communicating, to various
stakeholders,thelevelofcompliancetothecodeofcorporategovernance.There
are,however,noexplicitprovisionsformandatorycomplianceoftheboardwith
the company's anti-corruption programme. However, the code of corporate
governancerecommendsthattheboardundergoesannualtrainingonareasof
governancefromcrediblesources.
Intermsofexecutiveremuneration,thecoderecommendsthattheboardhasan
independentremunerationcommitteetorecommendtoittheremunerationand
structure of the compensation of the executive and non-executive directors.
Further, the code recommends that the remuneration of the executive board
should be linked to corporate performance, while that of executive directors
shouldbeinlinewithindustryrates.Informationonthedirectors'remuneration
andbene�itspackageshouldbeapprovedbyshareholdersatanannualgeneral
meeting and should formpart of the notes in the company's annual �inancial
report.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
24
TheCodeofCorporateGovernancePracticesforIssuersofSecuritiestothePublic
2015,TheCompanies(general)RegulationsandtheCompaniesAct,2015have
variousprovisionsoncon�lictofinterestoftheboard.
Thecoderecommendsabalanceofexecutiveandnon-executivemembers,
withthenon-executivemakingupthemajorityandhaveapolicythatensures
independenceoftheboard.Additionally,thecoderequiresthattherebeapolicyto
manage con�lict of interest of the board. This should include a register of the
board'scon�lictofinterestdeclarationsthatshouldbeupdatedbythecompany
secretary.Therearehowevernorequirementstomakethisregisterpublic.
TheCompaniesAct,2015requiresthatadirectorofacompanyavoidssituations
thatcanpresentacon�lictofinterestwiththecompany. Theregulationsonthe
otherhand,requirethatthedirectorsdeclarethenatureandextentofthecon�lict
andavoidsvotingorbecountedasquoruminmattersrelatingtothedeclared
con�lict.
Theassessmentthereforerecommendsthefollowing:
IntheShortterm:
Recommendation Agency 1. AmendtheBriberyAct2016toincludeprovisionsfor
privatecompaniestoprovideforWhistleblowerprotectionmechanismsaspartoftheiranti-corruptionprogrammes
EACC,KEPSA,KAM
2.Civilsociety,incollaborationwiththeEACCandBusinessMember Organisations
to sensitise
theprivatesectoron
theimportanceofbusinessintegrity.Thiscanbeginwithasensitisation
campaignontheprovisionsoftheBriberyAct.
EACC,KEPSA,KAM
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
25
1. KEPSA,KAMandtheUNGlobalcompactshouldpreparesampleanti-corruptionpolicywithminimumrequirementstobeadoptedbysignatoriestothecodeofethicsforcompaniesinKenya
KEPSA,KAM,UNGlobalCompact
2.
ConsiderincludinganindicatoronadoptionandimplementationofintegritymanagementmechanismsasanassessmentcriteriaintheexistingawardinitiativessuchasFiReAwardstoencourageaccountabilityintheprivatesector
CMA,ICPAK,EACC,KAM,KEPSA
Recommendation Agency
Inthemid-term:
1. Thereisneedforthecountrytoadoptcohesiveintegritystandardsthatapplytoallcategoriesofcompanies.
KEPSA,CMA,
Recommendation Agency
Inthelongterm:
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
26
AssessmentsummaryfortheCivilSociety
Theassessmentofthecivilsocietylooksintotheirroleinreducing,preventingand
respondingtocorruptionintheprivatesector.Itassessestwothematicareasand
threeindicators.Overall,theassessmentnotesthatintermsofbroaderchecksand
balances,thecivilsocietyperformsaveragelywhiletheyperformpoorlyintermsof
engagementwiththeprivatesector.The�indingsarepresentedgraphicallybelow:
Thematicarea:Broaderchecksandbalances
Independentmedia
Civilsociety monitoringofbusinessintegrity
Civilsocietyengagementin businessintegrity
25 50 75 100
Themedia inKenya is largelyownedand controlledby theprivate sector for
commercialpurposes.Thishasbeenperceivedtocompromisetheirindependence
andreportingtheprivatesectorinnegativelight.Theassessmentfurther�indsthat
mediapractitionerssubscribetoacodeofconductprescribedandenforcedbythe
MediaCouncilofKenya.
On the other hand, the Constitution of Kenya guarantees independence of the
mediafromgovernment.Thishoweverhasbeenputtotestseveraltimes,with
governmentattempting,andsometimessucceeding,inunderminingthisthrough
passageofvariouspiecesoflegislationsuchastheSecurityLawsAmendmentact
andtheMediaCouncilAct.
In termsofcivil societymonitoringofbusiness integrity, the interventions
undertakenarenotedtobethematicanduncoordinatedforthemostpartandhave
led to limited success.However, some successful initiatives of the civil society
engagingthepublicsectorincreatinganenablingenvironmentforthebusiness
sectorhavebeenrecorded.
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
27
0
�igure4:AssessmentscoresforCivilSociety
Nevertheless, therehasbeen limitedcivil societyengagementwith theprivate
sector.Whiletherehavebeensectorbasedinitiativesandcampaignsundertaken
by the civil society, there are limited reports outlining the success of such
initiatives.
Theassessmentthereforerecommendsthefollowing:
Intheshortterm:
Recommendation
Agency
1.
Strengthen
theenforcementmechanismattheMediaCouncilofKenya
tocheckissuesofintegrityamongjournalists.
MediaCouncilofKenya
2.
Thereisneedforcivilsocietyorganisationstoconveneaforumthatfocusesonbusinessintegrity.Similarforahaveseensomelevelofsuccessintheinitiativesundertakeninthepublicsector.
CivilSociety
1. Thereisaneedtocivilsocietytohaveaconcertedefforttoengagetheprivatesectorinmattersofbusinessintegrity.Theycanleveragetheirexperienceinengagingthepublicsectortoengagetheprivatesectorongovernancematters.Forinstance,civilsocietycanseekobserverstatusinBusinessMemberOrganisation initiatives.
CSOs,KEPSA,KAM
Recommendation Agency
IntheMidterm:
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
28
Organization Sector
1. KenyaRevenueAuthority Government
2.
BusinessregistrationBureau
Government
3. EthicsandAnti-CorruptionCommission
Government
4. UNGlobalCompactKenya–
UNGC-K
PrivateSector
5. KenyaAssossiationofManufacturers-KAM
BusinessMemberOrganization
6. GlaxoSmithKline
PrivateSector
7. KenyaBankersAssociation
PrivateSector
8. InstituteofCerti�iedPublicAccountantsKenya-
ICPAK
ProfessionalBody
9. CUTS-Nairobi CSO
Annex1–NationalAdvisoryGroupMembers
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
29
Annex2-TRACQuestionnaire
REPORTINGONANTI-CORRUPTIONPROGRAMMES(ACP)
1. Doesthecompanyhaveapubliclystatedcommitmenttoanti-corruption?
2. Doesthecompanypubliclycommittobeincompliancewithallrelevant
laws,includinganti-corruptionlaws?
3. Doesthecompanyleadership(seniormember[s]ofmanagementorthe
board)demonstratesupportforanti-corruption?
4. Doesthecompany'scodeofconduct/anti-corruptionpolicyexplicitly
applytoallemployeesandtheboardofdirectors?
5. Doesthecompany'santi-corruptionpolicyexplicitlyapplytopersons
whoarenotemployees,butareauthorisedtoactonbehalfofthe
companyorrepresentit,forexampleagents,advisors,representativesor
intermediaries?
6. Doesthecompanymakeanti-corruptionrequirementsonnon-controlled
personsorentitiesthatprovidegoodsorservicesundercontract,for
examplecontractors,subcontractorsorsuppliers?
7. Doesthecompanyhaveananti-corruptiontrainingprogrammeinplace
foritsemployeesanddirectors?
8. Doesthecompanyhaveapolicyongifts,hospitalityandexpenses?
9. Isthereapolicythatexplicitlyprohibitsfacilitationpayments?
10.Doestheprogrammeenableemployeesandotherstoraiseconcernsand
reportviolationsoftheprogrammewithoutriskofreprisal?
11.Doesthecompanyprovideachannelthroughwhichemployeescan
reportsuspectedbreachesofanti-corruptionpolicies,anddoesthe
channelallowforcon�identialand/oranonymousreporting
(whistleblowing)?
12.Doesthecompanycarryoutregularmonitoringofitsanti-corruption
programmetoreviewtheprogramme'ssuitability,adequacyand
effectiveness,andimplementimprovementsasappropriate?
13.Doesthecompanyhaveapolicyonpoliticalcontributionsthateither
prohibitssuchcontributionsorrequirescontributionstobepublicly
disclosed?
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
30
ORGANISATIONALTRANSPARENCY(OT)
1. Doesthecompanydiscloseallofitsfullyconsolidatedsubsidiaries?
2. Doesthecompanydisclosepercentagesownedineachofitsfully
consolidatedsubsidiaries?
3. Doesthecompanydisclosecountriesofincorporationforeachofitsfully
consolidatedsubsidiaries?
4. Doesthecompanydisclosecountriesofoperationsforeachofitsfully
consolidatedsubsidiaries?
5. Doesthecompanydiscloseallofitsnon-fullyconsolidatedholdings?
6. Doesthecompanydisclosepercentagesownedineachofitsnon-fully
consolidatedholdings?
7. Doesthecompanydisclosecountriesofincorporationforeachofitsnon-
fullyconsolidatedholdings?
8. Doesthecompanydisclosecountriesofoperationsforeachofitsnon-
fullyconsolidatedholdings?
COUNTRYBYCOUNTRYREPORTING(CBC)
1. Doesthecompanydiscloseitsrevenues/salesincountryx?
2. Doesthecompanydiscloseitscapitalexpenditureincountryx?
3. Doesthecompanydiscloseitspre-taxincomeincountryx?
4. Doesthecompanydiscloseitsincometaxincountryx?
5. Doesthecompanydiscloseitscommunitycontributionsincountryx?
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
31
BUSINESSINTEGRITYCOUNTRYAGENDA(BICA)KENYAREPORT
32
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