The Extortion Economy: How 'Goodwill' Payments Are Killing African Businesses

"Just a small goodwill payment—maybe 1.6 million shillings—and the space is yours."

If you've ever tried to rent business space in Nairobi's CBD, you've heard this line. And if you're like most entrepreneurs, you've walked away wondering how this is even legal.

Spoiler alert: It's not. But it's so normalized that we've started calling corruption "goodwill."

The Numbers Don't Lie

Let's break down the math of doing business in Kenya:

• Office space "goodwill": Up to Sh1.6 million

• Monthly rent: Sh90,000

• Police "protection fees": 50-200 shillings daily for a business like a bar or a liquor store

• Various permits and "facilitation fees": Variable but constant

At Jamia Mall, 66 shops closed when landlords demanded Sh1.25 million in goodwill payments for lease renewals. Think about that—66 businesses, probably hundreds of jobs, killed by one greedy decision.

The Ripple Effect

This isn't just about big businesses. Every matatu owner paying daily bribes, every bar owner cutting into profits to feed corrupt officers, every entrepreneur choosing not to expand because of "facilitation fees"—these are the small cuts that bleed our economy to death.

One bar owner I know was forced to close after two years of police extortion. Not because the business wasn't profitable, but because the protection racket became more expensive than the profits.

The Psychology of Normalized Corruption

Here's what really gets me: We've gotten so used to this that we budget for bribes. We call them "facilitation fees" and "goodwill payments" as if giving them cute names makes them less criminal.

When someone demands a bribe, we negotiate the amount instead of reporting them. We've internalized the system so completely that we're now participants instead of victims.

The International Embarrassment

Kenya ranks 123 out of 180 countries on Transparency International's corruption index. We're not just failing ourselves—we're failing on the global stage. Every investor who chooses Ghana over Kenya, every company that sets up in Rwanda instead of here, every entrepreneur who relocates to Dubai—they're all making logical business decisions based on our corruption reputation.

The Real Cost

But let's talk about what this really costs us:

Innovation Death: When starting a business requires corruption budgets, only established (often corrupt) players can afford to play. New ideas die before they're born.

Brain Drain: Our best entrepreneurs leave. Not for better opportunities, but for fair opportunities. When success depends more on who you know than what you build, merit becomes irrelevant.

Poverty Cycle: Small businesses can't grow when they're constantly being bled by corruption. Jobs aren't created. Communities stay poor.

Question for You: How much have you paid in "goodwill" and "facilitation fees" in the last year? Add it up. That's money that didn't go into growing your business, hiring employees, or innovating.

The Uncomfortable Truth

We keep electing the same people who created these systems. In the 2022 elections, only 5 out of 241 candidates recommended for disqualification by the Ethics and Anti-Corruption Commission were actually barred from running.

We complain about corruption and then vote for corrupt leaders. We demand change, then participate in the same systems that keep us down.

The Way Forward

Some countries are trying different approaches. In our next article, we'll look at why some Africans are looking to military leadership as an alternative—and what Burkina Faso's Captain Traoré might teach us about breaking these cycles.

Your Action Item: Next time someone demands a "goodwill payment," ask them for a receipt. Watch how quickly the conversation changes when you treat corruption like the crime it is.

What's your worst corruption story? Share it below—but more importantly, what did you do about it?

About the Author

Dr. Julius Kirimi Sindi is a global expert in research funding, policy impact, and donor relations. With extensive experience in analyzing philanthropy, business, and science funding, Dr. Sindi fosters sustainable and inclusive research ecosystems. He has facilitated international business relationships across Africa, Europe, and Asia. His upcoming book, "The Blueprint of Life Well Lived," explores successful strategies for navigating complex business environments while achieving sustainable growth.