APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA the policies and programmes, which will in turn promote participatory governance. (Ministry of Devolution and Planning) vi) The government is advised to streamline various development funds to avoid overlap and duplication, and also to enhance efficiency and effectiveness. A comprehensive audit of the funds needs to be carried out. In addition, the full names and addresses of the beneficiaries of each of the funds should be published regularly. (The National Treasury, Ministry of Devolution and Planning) vii) Payroll audits (both at the national and county levels) need to be carried out on a regular basis to identify ghost workers (if any), fill data gaps and identify control weaknesses for corrective measures (Salaries and Remuneration Commission). viii) There is need to check the rising huge wage bill that constitutes a significant proportion of the domestically generated revenue. The policy of staff rationalization is good and needs to be sustained, and the allowances paid to staff be curtailed, while eligibility also needs to be tightened. Similar measures need to apply to elective posts. (Salaries and Remuneration Commission, National Treasury, Parliament) 4.6 OBJECTIVE FOUR: FIGHT CORRUPTION IN PUBLIC ADMINISTRATION AND MONEY LAUNDERING 4.6.1 Summary of the Country Self-Assessment (CSAR) 360. The CSAR notes that corruption is a major social challenge in the country because it hinders development, because corruption limits the resources available to the government to address poverty. Also, corruption destroys social values and enfeebles democracy and good governance. The CSAR presents the various measures taken to fight corruption. Among the measures are the Ethics and Anti-Corruption Commission Act, 2011 that led to the establishment of the Ethics and Anti-Corruption Commission, EACC (a body that replaced the Kenya Anti-Corruption Commission, KACC), the Leadership and Integrity Act 2012 and Public Officers Ethics Act 2003. There is the National Anti-Corruption Campaign Steering Committee (NACCSC), established by the President to co-ordinate the anticorruption campaign across the country. 361. The CASR explains that the sources of laundered money come from corruption, fraud, human and firearms trafficking, cattle rustling, robbery, tax evasion, insider trading and market manipulation and a host of others. Three key stages (placement, layering and integration), according to the CSAR, are involved in money laundering. The Proceeds of Crime and Anti-Money (POCAMLA) Act, 2009, the Mutual Legal Assistance Act 2011 and the Prevention of Terrorism (Amendment) Act, 2012 are some of the laws enacted to check money laundering. In 2012, the Financial Reporting centre (FRC) was created. | 166 |

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