Financial Crime World

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Kenya’s Anti-Bribery and Corruption Policies Take Center Stage

As Kenya continues to grapple with corruption, the country has taken a crucial step towards tackling the menace by enacting anti-bribery laws. The Bribery Act, No. 47 of 2016, and its subsequent regulations, aim to prevent, investigate, and punish giving and receiving bribes in both public and private sectors.

New Regulations to Operationalize Anti-Bribery Laws

The latest development in this regard is the promulgation of the Bribery Act Regulations, 2021, which operationalize Section 9 of the Act. This requires all entities, regardless of size or nature of operations, to have procedures in place for preventing bribery and corruption.

Requirements for Anti-Bribery Policies and Procedures

According to the regulations, anti-bribery policies and procedures should take into account various factors, including:

  • The number of employees
  • Gross annual turnover
  • Geographical spread of operations
  • Risk of bribery and corruption

Policies must also address specific matters such as:

  • Bribery and corruption risk assessment
  • Anti-bribery communication and training
  • Structural mechanisms for reporting bribery and corruption
  • Whistleblowing mechanisms
  • Modes of compliance monitoring and review

Implementation Timeline

Entities are required to implement these procedures within six months of the making of the regulations, which means that all entities operating in Kenya should have their anti-bribery policies and procedures in place by May 2022.

Additional Requirements for Specific Entities

  • Subsidiaries and franchisees must adopt the anti-bribery procedures of their parent entities or franchisors, but this does not relieve them from their obligation to implement their own procedures.
  • Local entities establishing branches are responsible for ensuring that each branch complies with Section 9 of the Act and implements the anti-bribery procedures.
  • Joint ventures must establish separate anti-bribery policies and procedures.
  • New entities incorporated will be required to have their own anti-bribery procedures.

Reporting Requirements

The regulations also specify the contents of reports made to the Ethics and Anti-Corruption Commission (EACC), including:

  • Date and time
  • Particulars of the allegation
  • Place of action
  • Value
  • Nature

Where an informant requests anonymity, their name and contact details may be omitted.

Conclusion

In conclusion, both public and private entities in Kenya need to re-evaluate their anti-bribery and anti-corruption policies and procedures, together with their whistleblowing mechanisms, to ensure compliance with the Bribery Act, 2016, and the Bribery Act Regulations, 2021. The deadline for compliance is six months from November 26, 2021.