Corruption is simply defined as abuse of public office for private gain. It occurs when a public official extorts a bride or accepts one to perform his official duty, or he uses his position to perpetuate theft of public resources. Although corruption also permeates the private sector, it’s effect in the society is more pronounced in the public sector. It is an international phenomenal that is not constrained by any political or economic boundaries. It thrives in any country whether developed or developing. The rich and the poor are not spared. Kenya has had its share of it in every facet of society. Its effect in the manufacturing sector in the last 30 years of our study had a dampening effect in the manufacturing sector. However, the government has made a concerted effort to fight and minimize its effect in every sector of the economy with a mixed result in the last 20 years. In the last few years several benchmarks have been achieved with significant success including setting up new institutions to improve governance, revamping old institutions and enforcing the law. However, more still need to be done to desensitize the society on corruption including social norms and ethics, strengthening and harmonizing institutions. In essence, where the executive, legislative and judicially are working in concert to achieve greater success. This paper postulates the most effective approach in dealing with corruption is strengthen domestic institutions and galvanize international corroboration.
investment behavior, cost of capital, corruption, economic growth, Kenya manufacturing sector, Kenya government policy on corruption.