ABSTRACT

This chapter examines two major scandals: the Goldenberg scandal and the Anglo Leasing scandal, which was the first under Mwai Kibaki's government, elected on the promise of transparency and fighting corruption. The Anglo Leasing scandal, derisively referred to as Anglo Fleecing, extruded upon the Kenyan scene in 2003/2004, during the early years of Kibaki's government. Kenya's major corruption scandals have fleeced the public coffers of trillions – actual figures are difficult to ascertain given corruption's secrecy. Although Kenya's anti-corruption legislation dates back to 19560, before Kenya independence, the debate over defining corruption and prosecution of individuals accused of corruption as donors and western countries emphasized good governance and democratization as conditions for foreign aid and loans. Regarding corruption's impact, businesses rank corruption as the third top major or severe business constraint, after tax rates and access to finances. Infrastructure was ranked fourth – including transportation and irregular electricity supply.