KEPSA vouches for strict compliance with code of conduct
IN COLLABORATION WITH CIPE, KEPSA LAUNCHED ANTI-CORRUPTION COMPLIANCE TRAINING
KEPSA in partnership with Center for International Private Enterprises (CIPE) launched Anti-corruption Compliance training on targeting midsized companies to equip them with relevant skills and knowledge on the development and implementation of Anti-Corruption Compliance systems within their companies.
Research by Ernest and Young on private sector bribery found that Kenyan companies are losing 20% of their revenue to internal fraud with their cost of business increasing by 10% due to corruption. Majority of the corruption perpetrators are middle level managers aged between 35-45 years.
Speaking during the Anti-corruption training, KEPSA Head of Policy and Research Analysis Mr. Victor Ogalo explained measures that KEPSA has taken in resolving corruption matters in Kenya. He said KEPSA has shown great commitment in the fight against corruption going as far as sponsoring the Anti-bribery Act 2015 in Parliament. He further said that while these efforts are well meaning, it is important that concerted efforts are focused at firm level, where it all starts. That way, the country will begin to see tangible gains in the fight against corruption.
The Anti – Corruption training will focus on top and middle level managers working in procurement, finance and warehouse departments to develop systems on a range of anti-corruption issues such as risk assessment, reporting and supply chain practices. Adopting integrity and ethical business practices will open doors for Kenyan midsized companies to make global partnerships with multinational organizations looking to expand their businesses in Kenya through franchising, and distribution.
In today’s globalized world, where international value chains stretch across borders and continents, anti-corruption compliance provides a vital competitive advantage. Ethical companies tend to have higher valuations, are more attractive to potential investors and employees, and are more likely to be engaged in long-term arrangements with their business partners. Increasingly, companies are expected to ensure not just the integrity of their own operations but also the conduct of their suppliers, distributors, and agents wherever they may be says. Mr. Lars Benson, Regional Director CIPE.
“Lack of integrity and unethical practices have now become a major cause of revenue loss for businesses. The private sector has to put in place Anti-corruption compliance measures at firm level. This will not only seal corruption loop holes and boost revenues for their companies but also make fighting corruption a personal responsibility of the employees, directors, suppliers and associates alike.” Said Mr. Ogalo.
Kenya is losing Kshs. 608 million to corruption annually. The impact of this loss is greatly felt by the private sector through a decline in revenue. Corruption impedes business growth, escalates costs and poses serious legal and reputational risks. It also raises transaction costs, undermines fair competition, impedes long-term foreign and domestic investment and distorts development priorities. Investors also shy away because corruption negatively impacts value and poses financial, operational and reputational risks to their investments.
Anti-Corruption training will be offered three (3) times annually. The first training will be held between 3rd and 4th May 2018, with the next trainings happening in August and November 2018. However, companies that prefer a tailored solution will also be considered with tailored trainings offered on demand.