Revealed: How secret clauses in government deals are fueling corruption

Kenyans are being locked out of critical information on development creating a fertile ground for corruption, misuse of public funds and worsening the debt crisis, Transparency International has raised alarm.

The anti-corruption lobby says non-disclosure agreements signed in major government contracts and resource backed commitments is undermining public accountability at a time when Kenya is struggling with rising debt repayments and shrinking fiscal space.

Transparency International Kenya Head of Programmes Gibson Mwaita said access to information on sovereign borrowing and public contracts had become increasingly difficult because of confidentiality clauses embedded in state agreements.

“Citizens, journalists and oversight institutions must have timely access to debt agreements, extractive contracts, public expenditure data and revenue flows in order to meaningfully scrutinise how public resources are managed and how borrowing decisions are made,” Mwaita said.

The concerns are particularly significant for Kenya, where questions have repeatedly emerged over the cost, procurement processes and repayment terms of large-scale infrastructure projects financed through external borrowing.

Economists warn that when debt agreements are hidden from public scrutiny, governments may commit taxpayers to expensive obligations without sufficient accountability on value for money, project feasibility or procurement integrity.

Speaking during the Sixth Edition of the AFRODAD Media Initiative Programme in Nairobi, Transparency International Kenya is now calling for reforms to strengthen beneficial ownership transparency, whistleblower protection and public access to information.

The lobby warned that governments across Africa were increasingly relying on legal provisions and confidentiality arrangements to shield sensitive public contracts from scrutiny.

“The signing of non-disclosure agreements when it comes to contracting is something that is making it very difficult to access information, and that is something that we really need to either push for reforms or find a way of calling for access to that information,” he said.

The remarks come amid growing public concern over Kenya’s mounting public debt, which now consumes a large share of government revenues through debt servicing, leaving limited resources for healthcare, education, infrastructure and social protection.

Kenya has in recent years entered into several high-value infrastructure and energy deals whose financing terms remain only partially disclosed to the public.

Civil society groups and governance experts have long argued that secrecy in such contracts weakens parliamentary oversight and exposes taxpayers to hidden liabilities.

Transparency International linked opaque contracting to wider governance failures that continue to drain African economies through corruption, illicit financial flows, tax abuse and conflict-of-interest arrangements.

According to the organisation, many African countries are simultaneously rich in natural and human resources yet remain trapped in debt because of weak governance systems and poor accountability structures.

“Africa continues to lose enormous amounts of resources through illicit financial flows, corruption, opaque contracting arrangements, tax abuse and weak accountability systems,” Mwaita said.

He argued that the continent’s debt crisis could not be separated from governance and transparency failures.

The organisation says beneficial ownership disclosure is critical in exposing anonymous company structures used to facilitate corruption, tax evasion and illicit financial flows, especially within extractive industries and large public procurement deals.

“Beneficial ownership transparency remains critical in exposing anonymous company ownership structures that enable corruption, tax evasion, conflict of interest and illicit financial flows,” Mwaita said.

The organisation also raised concern over the reluctance of individuals to report corruption because of fear of intimidation, retaliation or legal consequences.

“Across Africa, individuals who expose corruption, financial misconduct and abuse of office often face intimidation, retaliation or legal risks,” he said, adding that stronger whistleblower protections were necessary to uncover corruption networks tied to public spending.

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