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How The Blue Company and others are helping the private sector fight against corruption in Africa

Corruption remains one of the biggest challenges facing Kenya. Actually, East Africa. Wait a minute, all over the continent… oh, and far beyond. It undermines trust and hence stifles economic growth, and its effects are felt across all sectors. Companies often find themselves entangled in unethical practices such as bribery, fraud and mismanagement, as they navigate their way through an environment where transparency and accountability are hard to handle.

The private sector stands at a pivotal moment. As global attention increasingly turns toward ethical governance and corporate responsibility, businesses in Africa face a choice: perpetuate the status quo or embrace a transformative path of integrity, transparency and accountability.

Organisations like The Blue Company (where I am a member of its Membership and Ethics Committee) and the UN Global Compact are stepping in to lead the way. Rooted in the belief that ethical governance is the cornerstone of sustainable development, they work to embed integrity at the heart of corporate culture. Through certification, training and advocacy, such initiatives support businesses to rise above corrupt practices and champion ethical standards.

But the philosophy that underpins this approach is larger than any one initiative. At its core is the conviction that integrity is more than a compliance requirement – it is a driver of trust, innovation and long-term growth. Businesses committed to ethical practices gain reputational advantages, attract investment and foster environments conducive to sustainable development.

Change begins at the top, as leaders play a critical role in shaping corporate culture, setting the tone for ethical behaviour and ensuring accountability. For a culture of integrity to thrive, leaders must commit to transparent decision-making and zero-tolerance policies for corruption. When they embody such values and behaviours, they inspire trust within their organisations and beyond.

However, leadership alone is not enough. Businesses must invest in capacity building to ensure alignment across all levels. Comprehensive training programmes that focus on ethical decision-making, anti-bribery measures and practical approaches to transparency are crucial. These efforts equip employees with the tools they need to uphold integrity in their daily operations.

Corruption is not just a business issue – it is a societal one. Addressing it requires collective action from professional associations, civil society, governments and businesses. Advocacy plays a vital role in this effort, promoting policies that support ethical governance and creating systems that reward transparency.

Collaborative initiatives, like those championed by The Blue Company, amplify the impact of individual efforts. By working with stakeholders across sectors, these initiatives help establish integrity as a norm rather than an exception. Advocacy also influences legislation, ensuring that ethical practices are supported by robust legal frameworks.

Innovation is a powerful tool in the fight against corruption. Emerging technologies, such as blockchain for secure record-keeping and artificial intelligence for auditing processes, offer businesses new ways to enhance transparency and accountability. By adopting these

advancements, organisations can prevent fraud, streamline compliance, and stay ahead in the evolving business landscape.

Technology also empowers stakeholders by increasing access to information. Digital platforms that track supply chains, for example, make it easier to identify and address unethical practices. Such tools deter corruption and so build trust among consumers, investors and regulators.

While some progress has been made, much remains to be done. Corruption continues to be a significant barrier to economic growth. Expanding ethical business practices across industries and geographies is essential for transforming Africa’s private sector into a driver of integrity-driven development.

The road to ethical governance is not easy. For corruption provides shortcuts and immediate gains that can tempt businesses to compromise their values. But the long-term rewards of integrity far outweigh the risks of unethical behaviour.

In the face of such challenges, these initiatives offer a path forward, as we heard last week at the Africa Business Ethics Conference. By prioritising certification, capacity building and advocacy, they create a foundation for trust and sustainable growth. Yet their success depends on a collective commitment from the private sector to act responsibly and lead by example.

For Africa to unlock its full potential, businesses must embrace a vision of integrity as a guiding principle – not just for compliance, but as a cornerstone of competitive advantage. This shift will not only attract investment and foster innovation but also lay the groundwork for a thriving economy built on trust and merit.

In a region where corruption has long been a major obstacle to progress, the private sector has the opportunity to redefine success. By championing ethical governance, businesses can become catalysts for systemic change, paving the way for a future where there will be less resistance to transparency and accountability.

From Jomo to Uhuru, Rao’s Nine Lives

Like Joe Wanjui and Manu Chandaria, about whom I have written recently, I got to know Sharad Rao through Rotary. But having recently read his autobiography, From Jomo to Uhuru, Rao’s Nine Lives – Reminiscences of the Power, Courage and Intrigues that Shaped Kenya’s Post-Colonial History, I now know him very much better.

Being with Rao one appreciates his integrity and frankness, calling a spade a spade, plus his calmness and clarity of thinking, his wonderful memory and his gentle humour – such powerful contributors to his extraordinary legal career. All this is so clearly reflected in his memoir, a follow up to his earlier book, Indian Dukawallas – Their Contribution to the Political and Economic Development of Kenya, which was published in 2016.

His autobiography was launched in June of this year, and in it Rao takes us from his origins through his education and his legal life to the community projects that now occupy his time in his late eighties. Two themes within the book stood out for me: the racism of the colonialists vis-à-vis both Asians and Africans, and what it takes for judges to perform honourably.

Let me start with the racism, and I can’t resist sharing with you this awful quote in the book from Charles Eliot, the colonial administrator who initiated the policy of white supremacy here: “The average Englishman tolerates a black man who admits his inferiority, and even those who show a good fight and give in, but he cannot tolerate dark colour combined with an intelligence in any way equal to his own.”

Rao also quotes Colonel Grogan as having proclaimed “We Europeans have to go on ruling this country and rule it with iron discipline.” Don’t mention Grogan in my house, as my wife Evelyn Mungai’s great grandmother Wanjiru had her land where the Norfolk Hotel now stands grabbed by this awful fellow.

Prejudice against Asians continued after Kenya became decolonised, and he tells us numerous stories of how he and others became victims of such exclusion.

Let me now turn to the second theme that struck me. In a chapter on his chairmanship of the Judges and Magistrates Vetting Board in 2011 we learn so much about what it takes to be a high performing judge. For as he and his colleagues sat in judgement on the extent to which the behaviour of the judges was consistent with the recently passed 2010 Constitution, they had to reflect deeply on who should qualify to continue serving on the bench and who should step down.

Their purpose, he writes, was “to remove the taint of the judiciary as being corrupt, unduly favourable to those in power, obsessed with technicalities, incapable of dealing with cases with requisite promptness, and generally unable or unwilling to administer justice in an appropriate manner.” He writes about what good and bad behaviour entails, and it occurred to me that the best way of summing it all up would be to say they must be highly emotionally intelligent.

Among Rao’s many wonderfully narrated stories, I want to pick out the one in 1974 where President Kenyatta announced that from then on Presidents of all societies, associations and clubs should be called Chairman and not President – as Kenya had only one President, himself. This happened shortly before Rao was due to visit China, and he told then Attorney General Charles Njonjo that Chairman Mao would take offence if he also called himself Chairman. He was given exemption, so for the two weeks he was in China Kenya had two Presidents. A good example of Rao’s easy humour.

For many years thereafter the edict was adhered to, till one day at a Rotary Conference where Kijana Wamalwa was the Guest of Honour and I was giving the vote of thanks I asked him whether Rotary Chairmen could now again be allowed to be called Presidents, as they were everywhere else in the world. “What’s in a name?” he mumbled, and I said I took it this was an assent. From then on the title “President” was again no longer restricted to State House.

I read that in 1957, while studying law in London, Rao lived in Hampstead – which is where I grew up. What stage was I at in 1957? I had just entered my high school years. Oh well, now we are both in our third age, with so many ups and downs in our lives to look back on. I have yet to do so in the form of a book, but so good that Rao has.

Surviving a toxic CEO

A few weeks months I wrote an article about how toxic cultures are often created by single individuals, and about how and why they behave as they do. Then, more recently, I was invited to be the external speaker at a half-day session hosted by Corporate Staffing Services on the theme “Surviving a Toxic CEO or Director”, and it led me to reflect further on the subject.

I also turned to Google to see what it had to tell me, and one of the first images I was shown informed me that “a Google search for ‘Toxic Boss’ generates almost 58 million hits”. Well whether that’s true or not, there’s plenty of very helpful material out there about this jarring subject.

Here’s what I found as definitions of toxic:

“Very harmful or unpleasant in a pervasive or insidious way”; “Toxic people manipulate those around them to get what they want”; “This can mean lying, bending the truth, exaggerating, or leaving out information so as to take a certain action or have a certain opinion of them; “They’ll do whatever it takes, even if it means hurting people”.

Then here’s from an image titled “10 signs of a toxic boss”: Lying, Gaslighting, Stealing credit, Always interrupting, Backbiting and gossiping, Never giving recognition, Insulting and name-calling, Saying one thing and doing another, Managing by fear and intimidation, Blaming the team vs taking responsibility.

Finally, I found “Signs to watch out for that can indicate you’re dealing with a toxic person”: You feel like you’re being manipulated; you’re constantly confused by the person’s behaviour; you feel like you deserve an apology that never comes; you always have to defend yourself to this person; you never feel fully comfortable around them; you feel bad about yourself in their presence.

Thanks, Google, for all these insights, which I complemented with reflections on my own experiences in my presentation. I listed what I have found to be root causes of such behaviour, many of which relate to low emotional intelligence, and perhaps most importantly – as I pointed out in my last article – lack of self-awareness and empathy. Toxic leaders – no, “bosses” fits better – neither trust others nor, deep down, trust themselves. They tend to be over-ambitious and impatient; and they fear failure. They are self-centred and entitled, indifferent to the feelings of others, and the word that sums up such characteristics is narcissism.

The issue of the day was how to survive in such an environment. Here I remembered when I was once with a toxic boss who expected me to be giving instructions and to be feared. I defied him to create a much healthier sub-culture around me. But quietly, without telling him about how I was operating my flatter pyramid: on tip-toe, whispering, so he wouldn’t be aware.

Here are other suggestions for managing relationships with toxic bosses. Flatter them, but genuinely, where they have earned the right to praise – which they also do. And use humour, to show you are at ease with them and to add a light touch that supports a friendlier way of working together.

Much is said about the need for sharing written evidence when dealing with such inconsistent and manipulative characters. So agree your goals and document what has been agreed, and then communicate your progress, again including in writing.

If above your CEO there exists a board of directors among whom there are at least some members who may lend a sympathetic ear and ease the situation, reach out to them – as I have done at times in my career. It can be risky, but escalation is a responsible way of behaving in such situations – and it can at least be theraeutic!

Some final thoughts from me. First, when at one time I was feeling demotivated thanks to a toxic boss, I reached out to volunteer in community activities like Rotary where I felt more aligned with those around me and more appreciated. Then, at the session where I was speaking several participants reached out to me seeking my advice as a mentor over toxic relationships they were facing in their workplaces. Indeed, finding a safe external adviser can definitely be helpful, including by assisting you in managing your stress.

So be like a rock and not a sponge. Don’t allow the toxicity to infect your system. And while you don’t want to leave such an environment too soon, if it looks like being the new normal start planning your exit.

Should leaders eat last?

Should leaders be the ones to eat last? The US Marines believe so, as it shows they care for their people and are prepared to sacrifice for them. It’s why Simon Sinek chose Leaders Eat Last as the title of his best-selling book, first published in 2014. We selected it as the topic for our Rotary Club’s recent Book Club meeting, where we also discussed how Sinek’s American context applies here. I certainly don’t need to comment on when most of our Kenyan leaders eat – definitely not last!

Central to the requirements for being the kind of leaders Sinek wishes to see is the generation of broad “Circles of Safety” in their organisations. Within these circles staff trust one another, are therefore open and collaborative and so perform well, not least in dealing with external threats. Such leaders promote integrity and have evolved an uplifting purpose for their people, which generates the stamina to defer gratification and reach for long-term sustainability.

There’s lots more in the book about good contemporary leadership, including examples of role models who defy the pressure to go for easier short-term results. By contrast, leaders who turn a blind eye to the benefits of circles of safety tend to reduce their consideration of people issues to mere numbers, making it much easier to slash staff levels in hard times without feeling any pain or empathy. It’s why one of us homed in on Sinek’s insistence on the development of a healthy culture being at the centre of positive leadership.

For me it was interesting that the book was published in 2014. As had Sinek been writing it today he would have explicitly placed Environment, Social and Governance (ESG) issues at the heart of everything, since much of what he complained about and sought is what ESG initiatives promote: ethical sustainability.

We all appreciated Sinek’s easy-to-follow description of the four hormones, the biological chemicals within us, two selfish and two selfless ones that get stimulated in our system. On the selfish front we have Endorphines and Dopamine, that drove our ancestors to be hunter-gatherers. Endorphines mask physical pain, as in “the runner’s high”, while Dopamine makes us feel good when we accomplish something.

Then Sinek describes the selfless chemicals, that make us feel valued when we are appreciated and trusted and keep the circle of safety intact. Serotonin makes us feel strong and confident, proud, while Oxytocin delivers the feeling of friendship and love when we are with close and trusted friends. It makes us social, and feeling that we belong.

We noted that our Rotary presidents tend to eat last, after they’ve done with managing our lunch meetings, but generally we felt that leaders should be eating with their people not after them. We all agreed though that leaders should be the last to speak, having first listened to the other voices.

Uhuru Kenyatta was one of those who recognised the organised discipline of military leaders, putting senior military officers in charge of Nairobi County, the Kenya Meat Commission and elsewhere. And just now William Ruto praised the leadership style of the late General Ogolla. “Are there lessons here for our politicians?” asked one of us, “Or are they beyond redemption?” My concern is that I don’t see them ever sitting together as we were at our Book Club, discussing the fundamental issues of leadership. It’s what should be happening more of at places like the Kenya School of Government.

On the positive side though, we heard praise for the progress made in Makueni County, thanks to its first Governor, Kivutha Kibwana, and now Mutula Kilonzo Jr. I could also have added the good example of the first Governor of Laikipia, Ndiritu Muriithi, another who showed how a leader can make a transformative difference.

Towards the end of the book Sinek writes extensively on why millennials are as they are and how to handle them constructively, and here two of our members talked about their challenges in dealing with such young ones in the medical field. Sinek helps us understand the importance of when and therefore how different generations were brought up, and I mentioned that I am too old to be a baby boomer, having been born before World War II was over. I have therefore been brought up with frugality, which I have held on to since… like squeezing the last bit out of toothpaste tubes. ‘Me too,’ echoed another Rotarian, much younger than me… and a dentist by profession!

In conclusion, reading the book stimulated us positively, so my fellow Rotarians and I recommend it to you.

Competent or confident politician?

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Some time ago I wrote an article about Trump as a man whose I’m-OK-You’re-not-OK behaviour, one that required consistent win-lose interactions with others, masked a deeply insecure soul. Yet despite these insecurities, despite this lack of self-esteem, he built up extraordinary self-confidence, and through bullying, cheating and lying he achieved all that he did.

I refer to this as I recently read a provocative article in the London Times about Britain’s immediate former Prime Minister, Liz Truss. The headline said it all: “Truss proves talent-free bluster isn’t just for men”. And the opening paragraph tells us she broke one of the last glass ceilings. Not as the first female PM in her country, for she was not, but as “the first woman to reach the highest office propelled by gargantuan self-belief alone”.

Writer Janice Turner rightly reckons the kind of self-belief she displayed has not been associated with her gender. Indeed, she tells us, feminists have been known to pray “Lord, grant me the confidence of a mediocre man”.

We’ve been reading a lot about women holding back from higher office while younger and less experienced men lobby their way through. Here though, Ms Turner observed “a shameless, narcissistic, talent-free sense of entitlement”. Wow. Lots in common with Trump for sure, and indeed with so many politicians the world over.

I have also written about the competence-confidence matrix, with the competent one who lacks confidence often suffering from the “imposter syndrome”, while the confident one who lacks competence displays a cocky arrogance. The ideal position, as espoused by my heroes such as Ed Schein and Adam Grant, are those who behave with “confident humility”.

So where is Rishi Sunak, Liz Truss’s successor, in all of this? In a much better place. We have been reading about the values with which he was brought up and which it appears he has been able to largely hold on to despite entering the cut and thrust world of win-lose politics: family, honesty, education and hard work. Not a bad quartet.

His competence, certainly in matters financial, is indisputable. And his communication skills are definitely superior to hers. Well, that’s no big deal, as rarely have I come across such a wooden performer as Liz Truss in such a high office. Boy was she in need of coaching…but who knows, maybe her excess of self-esteem over self-awareness made her uncoachable.

How about our politicians here? For sure some are more competent than others, and some are better communicators than others. Many are at their best at high-octane campaign rallies whose objectives are mere entertainment, hype and goodies-distribution, while others know how to switch between such show-business performance and more serious and substantive output.

To be a politician, confidence is everything. As each one puts themselves forward for election, they are certain they will win, however justified or unjustified their optimism. So it was with Truss, so it was with Sunak; and so it was with all our political candidates in August, including those who lost.

Our responsibility as citizens is to study the competence-confidence mix of those who seek our votes, where competence includes adherence to good values and where mere confidence is woefully insufficient.

It was good to see the Mkenya Daima campaign focusing on this requirement for not only selecting good men and women, but then holding those who succeed at the ballot to account. It is why the Mkenya Daima tag line is Nitatenda Wajibu Wangu (I will do my responsibility).

It’s so dispiriting to me to see huge numbers of voters in the developed world casting their support for the Trumps and the Trusses of this world.

It shows the weakness in the civic education provided in so many countries that allows for populist promise-makers to get away with what they clearly should not… including Boris Johnson and his Brexit ones.

We’ve been through our elections just a few months ago. Have we selected enough of the humbly competent? Stay on the ball, fellow Kenyans, as President William Ruto has challenged us to do.

Rishi Sunak promised British citizens a government of “professionalism, integrity and accountability at all levels”. And President Ruto, when he confirmed his new cabinet, also called for integrity and accountability. We must indeed “do our responsibility”.

How firms can handle integrity lapses by staff

In PwC’s 2020 global economic crime and fraud survey, Fighting Fraud – A never-ending battle, fraud was identified among the top concerns. So the ability to identify fraud perpetrated from either within or outside the organisation and then to deal with it swiftly and fairly is critical.

In one large local company on whose board I serve, I chair the Board Audit, Risk and Compliance Committee, where the issue of identifying and handling fraud and other integrity issues features prominently. So let me share the lessons we have been learning in dealing with such matters.

A major challenge organisations face is just gathering information on fraud being perpetrated by employees or others, which is why many have invested in ways of making it as easy as possible to communicate information about integrity lapses.

These include ethics hotlines, compliance web portals, and email contacts to which to send such information – often outside of the organisation, and typically to an audit firm.

Not surprisingly perhaps, utilisation of these platforms is relatively low when compared to informal reporting, or finding out about cases through the grapevine.

Organisations, therefore, need to build cultures and systems that enable whistleblowers to feel it is the right thing to do and to feel secure about doing so. Some even provide monetary incentives, although this may encourage false whistleblowing – a not unusual occurrence anyway.

The speed with which reported issues are investigated, action is taken, and communication is fed back to the whistleblower, has a direct impact on confidence in the process. So there must be adequate investigating capacity, with staff possessing the relevant forensic experience.

Matters reported must be handled with utmost confidentiality, for whistleblowers need to remain anonymous, thus minimising the chances of retaliatory actions being taken by those involved in the integrity matter.

Then, staff in departments that are likely to access information on matters being reported – such as ICT, investigations and internal audit – should sign Non-Disclosure Agreements.

Some decide to sue staff for damages resulting from integrity issues, pursuing criminal and/or civil litigation. But the evidence threshold for successful litigation is extremely high, so one must ensure that documentation and other sources of evidence are impeccable – no mean feat.

For criminal proceedings, the investigating officers and prosecutors need to be properly appraised of the matter to ensure they fully understand the issues, prepare robust witness statements, and hence prosecute successfully.

In addition to the evidence, witnesses must come forward and corroborate that evidence, so organisations need to publish guidelines on witness protection, together with incentives to encourage witnesses to be present in what are likely to be lengthy court processes.

When obtaining evidence from private investigators, one must ensure that it is obtained through legal means, so that it can stand scrutiny in court.

Organisations also need to be alive to the fact that fraud can be perpetrated by anyone – even those responsible for ensuring internal compliance and investigating abuses.

Serious background checks and vetting therefore should be carried out before onboarding such staff, and an internal mechanism must be put in place to ensure that fraud perpetrated by staff in these offices can be detected.

In staff induction programmes the value of integrity and the importance attached to compliance should be included for all staff, and there should be continuous emphasis by all levels of management on these subjects in staff meetings.

Alongside this, those who uphold the value should be recognised, while those who do not should be penalised.

A major fraud risk results from conflicts of corporate and individual interests. It is therefore important for staff to be given an opportunity to declare such potential or actual conflicts so as to remain relaxed in their roles.

The process of making declarations should be continuous, so that staff are given an opportunity to declare interest conflicts upfront.

What happens when there is proof of culpability, and the organisation wishes to recover its losses from the employee?

With the slow pace of court litigation, it takes forever, diminishing the value of any recoveries. And that’s if the verdict is favourable, in itself of relatively low probability. But at least with the introduction of the Small Claims Courts such matters will be concluded much more quickly.

The more I have been involved in these integrity and compliance issues, the more I have realised how complex and challenging it is to deal with them, and how one must keep constant focus on them and keep applying the lessons learned.