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Corruption and Entrepreneurship in Kenya

Irene Ngunjiri


Africa has many bridges that dot the landscape with no roads to lead to them. This is because many projects are started but never get completed due to corruption. The bridge is completed but government often run out of funds to build the road. Corruption has become a common phenomenon in many developing and emerging economies. There are different views on the effects of corruption on entrepreneurship. What is clear is that entrepreneurship is paramount for economic growth. Entrepreneurship development is driven by a number of factors principally social, psychological and economic. All these factors are subject to corruption and consequently can deter entrepreneurship. This paper examines the impact of corruption on entrepreneurship in Kenya. The findings indicate that when formal institutions are inefficient corruption which subverts these institutions is beneficial in terms of economic development. Conversely, where formal institutions are relatively efficient, corruption is detrimental.

 Key words: corruption, business, entrepreneurship, Kenya, economy

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eISSN: 1998-1279