Fraud and Corruption in the Public Sector of Kenya: The Role of Forensic Accounting in Fraud Detection

Abstract

The main factors heavily affecting economic development and governance in Kenya are fraud and corruption. These vices have a significant negative impact. They reduce the public sector’s overall effectiveness. This study evaluates the nature of corruption and the impact of forensic accounting on fraud detection. The Fraud Triangle and Fraud Diamond theories explain the behavioral and structural causes of fraud in public institutions. The qualitative research approach applied in this study adopts a systematic literature review of academic journals, institutional reports, and organizational publications. Primarily, Transparency International and the Ethics and Anti-Corruption Commission (EACC) handle fraud and corruption. A thematic approach is applied to identify fraud patterns and investigate the effectiveness of forensic accounting practices in the public sector.  Here, findings reveal that embezzlement, bribery, and procurement and payroll fraud are the major types of corruption in Kenya. Researchers found that forensic accounting and improved systems strengthen fraud detection. However, weak governance frameworks and inadequate technology infrastructure negatively impact implementation. To become fully effective, forensic accounting depends on internal controls, strong governance systems, and institutional reforms. Ergo, technical solutions require other elements, like robust institutional reforms.