Effect of Corruption on Kenyas Economoc Growth - 6642 Words

UNIVERSITY OF NAIROBI SCHOOL OF ECONOMICS THE RELATIONSHIP BETWEEN CORRUPTION AND ECONOMIC GROWTH IN KENYA MULEMBO ENOKA X75/3844/2008 GERALD NGILAI MUEMA X74/3741/2008 GITHINJI JOSEPH MULWA X74/3726/2008 WANGARI ELIJAH GACHOHI X75/3777/2008 KIRU JOSEPH KAMAU X74/ 3599 /2008 TABLE OF CONTENTS INTRODUCTION 1 1.1 Background to the study 1 1.1.1 Ministry of Finance Kenya†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 2 1.2 Research Problem Statement 3 1.3 Research objectives 3 1.3.1 General Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 1.3.2 Specific Objectives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 1.4 Research Questions 4 1.5 Significance of the Study 4 1.6†¦show more content†¦This unit existed until May 2003 when the anti corruption and economic crimes Act (ACECA), established the Kenya Anti corruption commission (KACC). The ACECA replaced the prevention of corruption Act, 1956. ACECA is the key statute in the fight against corruption and is complimented by the public office ethics Act. Past reforms on public expenditure management have not worked well as the executive arm of the government has consistently failed to act on various recommendations of the watchdog institutions on the mismanagement of public funds. Similarly, the stated war against corruption, which is rampant in the public expenditure management, is yet to be won mainly due to legal technicalities encountered in trying to establish an effective and independent anti-corruption authority. There is therefore need for a thorough examination of the fiscal systems with a view to formulating pragmatic remedial measures (Baumol, 2003). Research Problem Statement The problem of this study is to explore the effects of corruption on the economic growth in Kenya. Corruption cases reported to KACC increased by 16 % from 3637 in 2,008 to 4473 in 2009 (economic survey 2010). Corruption affects both the nation and the individual. At the national level, corruption has led to poor economic performance. This has resulted in: increased taxation burdens on Kenyans; unplanned, misdirected expenditure on projects