The World Bank’s 2025 firm‑survey, cited in its latest Kenya Economic Update, records that 39 percent of Kenyan businesses consider corruption a major or severe constraint, up from 25 percent in 2013.

Respondents note that unofficial payments can delay permits, inspections and other licences, turning decisions such as buying a second production line into high‑risk gambles.

Small manufacturers also face high electricity costs, costly credit and cautious customers, and the added uncertainty of discretionary approvals further deters investment and job creation.

The survey highlights unequal treatment, where well‑connected firms often secure faster approvals while compliant competitors endure prolonged, opaque processes.

Experts recommend that business licensing be time‑bound, digital and trackable to reduce discretionary power and improve predictability for applicants.

They also call for each county and national regulator to publish clear fee schedules, required documents, expected turnaround times and formal appeal channels.

Independent mystery‑client audits are suggested as a tool to identify offices where bribery pressure persists.

The survey urges the establishment of protection mechanisms for businesses reporting extortion attempts, ensuring they are shielded from retaliation.