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Corruption costs Kenya's education and health ministries $48-million

Kenyan Deputy Prime Minister and Commerce Minister Uhuru Kenyatta (2nd L) speaks with Mauritian Deputy Prime Minister and Minister of Finance and Economic Development Rama Sithanen (R) prior to a press conference during World Trade Organisation (WTO) talks on July 25, 2008 at the WTO headquarters in Geneva.

Fabrice Coffrini/AFP/Getty Images/Fabrice Coffrini/AFP/Getty Images

Corrupt officials in Kenya's education and health ministries stole up to 4.2-billion shillings ($47.67-million U.S.) from 2005 to 2009 and names have been given to the police, Kenya's finance minister said on Monday.

East Africa's biggest economy loses up to 40 per cent of its gross domestic product to graft annually, according to the country's top graft-buster, the Kenya Anti Corruption Commission.

Uhuru Kenyatta said over 2.27-billion shillings were lost over a period of four fiscal years (2005-2009) in the education ministry, roughly equivalent to 1 per cent of education finances, while 1.65-billion shilling were embezzled in the ministry of health between 2007 and 2008.

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"The audit report together with the names of individuals...who were involved in the suspected fraud have been forwarded to the police for immediate further action."

Kenya slipped down the rankings of Transparency International's 2010 corruption perceptions index, falling to 154 out of 178 countries.

Mr. Kenyatta also said investigations into graft allegations concerning the Arid Lands Resource Management Project were underway.

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