State capture and entrenched corruption are major obstacles to Kenya’s economic development, according to the African Development Bank (AfDB).
AfDB President Akinwumi Adesina pointed to pervasive graft in Kenya’s public sector, noting that while the country has strong institutions and abundant potential, these are being undermined by systemic corruption and rent-seeking behavior.
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Speaking in Nairobi during a media briefing on Tuesday, Adesina stressed that corruption is diverting vital resources away from key development priorities.
“What is holding Kenya back is not a lack of resources or capacity,” he said. “It is rent-seeking, state capture, and mismanagement of public finances.”
The remarks come as Kenya grapples with mounting public debt, increased cost of living, and pressure to raise revenue through taxes and reforms. President William Ruto’s administration has faced widespread public protests following the controversial finance bill, which proposed new tax hikes. The bill has since been withdrawn amid the backlash.
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The AfDB head acknowledged the country’s economic resilience and potential but emphasized that reforms must target corruption and financial mismanagement to unlock sustainable growth.
Kenya is East Africa’s largest economy, with sectors like agriculture, ICT, and financial services driving regional influence. But the bank warned that the full benefits of this potential are being lost to corrupt practices that compromise service delivery and discourage investment.
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Adesina also highlighted the need for transparency and good governance, adding that addressing state capture is not only essential for Kenya’s economy but also for restoring public trust and attracting long-term capital.
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