The Kenya Private Sector Alliance (KEPSA) in partnership with Center for International Private Enterprises (CIPE) have launched an Anti-corruption Compliance training in Machakos County.
The training targets midsize companies to equip them with relevant skills and knowledge on the development and implementation of Anti-Corruption Compliance systems within their companies.
Participants from fourteen African countries including Kenya, Ethiopia, Mozambique, Nigeria and Sudan are attending the workshop at a hotel in Athi River.
Research by Ernest and Young on private sector bribery revealed that Kenyan companies are losing 20 percent of their revenue to internal fraud with their costs of business increasing by 10 percent due to corruption.
Majority of the corruption perpetrators are middle level managers aged between 35-45 years.
KEPSA has shown great commitment in the fight against corruption going as far as sponsoring the Anti-bribery Act 2015 in Parliament.
“While these efforts are well meaning, it is important that concerted efforts are focused at firm level, where it all starts. That way, the country will begin to see tangible gains in the fight against corruption.” Said Ms. Rachel Muthoga, Deputy CEO KEPSA.
The Anti - Corruption training focuses on top and middle level managers working in procurement, finance, and warehouse departments to develop systems on a range of anti-corruption issues such as risk assessment, reporting and supply chain practices.
“Adopting integrity and ethical business practices will open doors for Kenyan midsize companies to make global partnerships with multinational organizations looking to expand their businesses in Kenya through franchising, and distribution.” Ms Muthoga added.
In today’s globalized world, where international value chains stretch across borders and continents, anti-corruption compliance provides a vital competitive advantage.
Ethical companies tend to have higher valuations, are more attractive to potential investors and employees, and are more likely to be engaged in long-term arrangements with their business partners.
"Increasingly, companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be," Lars Benson, Regional Director CIPE said.
They spoke during the Launch of Business Ethics and Integrity training on Thursday.
“Lack of integrity and unethical practices have now become a major cause of revenue loss for businesses. The private sector has to put in place Anti-corruption compliance measures at firm level. This will not only seal corruption loop holes and boost revenues for their companies but also make fighting corruption a personal responsibility of the employees, directors, suppliers and associates alike.” Ms Muthoga said.
Kenya loses Sh608 million to corruption annually.
The impact of this loss is greatly felt by the private sector through a decline in revenue.
Corruption impedes business growth, escalates costs and poses serious legal and reputation risks.
It also raises transaction costs, undermines fair competition, impedes long-term foreign and domestic investment and distorts development priorities.
Investors shy away because corruption negatively impacts value and poses financial, operational and reputation risks to their investments.
Anti-Corruption training will be offered three (3) times annually.
The first training will be held between 3rd and 4th May 2018, with the next training scheduled to take place in August and November 2018.
However, companies that prefer a tailored solution will also be considered with tailored training offered on demand.