The study of corruption has contributed towards a conversation about the vice. It is therefore worth noting the emphasis placed on the far reaching effects of corruption largely negative. This study hence intends to contribute to the knowledge of corruption research by looking at the relationship between corruption, institutions and economic development. The focus of the study is Kenya from the year 1995 to 2012, the period takes into account two regimes in Kenya‟s history plagued by large scale corruption hence prompting the study.Regression analysis was conducted and the results showed that although corruption has far reaching effects on economic development, the quality of institutions holds the larger magnitude effect. This finding shifts the discourse towards strengthening of institutions as a measure to reduce corruption and enhance economic situation of people.
Key words: Corruption, Institutions, Economic Development, Regression