By Business Insider Reporter
East Africa has emerged as the epicenter of procurement fraud and other sanctionable practices in African Development Bank (AfDB)-funded projects, according to the lender’s latest integrity report.
The report by AfDB’s Office of Integrity and Anti-Corruption (PIAC) reveals that a total of 59 complaints of sanctionable practices were filed in 2024 across the continent.
Strikingly, 19 of those cases – nearly one-third – originated from East Africa, placing the region ahead of its continental peers in reported corruption and procurement-related malfeasance.
Procurement fraud, collusion, misrepresentation of qualifications, and bribery were among the most frequently cited offences.
PIAC warned that such practices not only undermine project delivery but also erode public trust and derail the Bank’s mandate to foster sustainable development.
“The high concentration of cases in East Africa demonstrates both the scale of risk exposure in the region and the urgent need for governments and implementing partners to tighten procurement oversight,” the report noted.
AfDB projects in East Africa cover critical sectors such as energy, transport, agriculture, and water supply, with billions of dollars disbursed annually. Experts say the prevalence of fraud threatens to dilute the developmental impact of these investments.
Governance analysts argue that while increased reporting may also indicate stronger whistleblowing mechanisms in East Africa, the persistent appearance of fraud cases underscores systemic weaknesses.
“Procurement remains one of the most vulnerable areas for corruption in donor-funded projects,” said a based governance consultant. “East African countries must enhance transparency by digitising procurement systems, adopting e-tendering, and ensuring strict enforcement of sanctions against offenders.”
The AfDB has ramped up enforcement efforts, sanctioning several firms and individuals found guilty of malpractice in recent years. Measures have included debarments, cross-sanctions with other multilateral lenders such as the World Bank, and referrals of cases to national authorities.
PIAC’s report also stressed the importance of preventive action, including training project staff on compliance, encouraging whistleblower protection, and collaborating with national anti-corruption bodies.
For East African economies – many of which rely heavily on donor-backed infrastructure projects – the reputational and financial stakes are high.
Kenya, Tanzania, and Uganda are among the Bank’s biggest recipients of funding, with projects spanning from roads to renewable energy.
“Every shilling lost to fraud is a school, a hospital, or a road denied to citizens,” said the consultant. “East Africa cannot afford to let procurement fraud continue unchecked if it is to achieve its development ambitions.” The AfDB has pledged to continue strengthening oversight through technology and closer engagement with civil society. However, analysts warn that unless regional governments demonstrate political will to tackle corruption, the cycle of fraud risks becoming entrenched.
