How KRA's Ksh5B Payment To Milk, Bread Firms Triggered Leadership Changes
The chair in particular blamed firms dealing with milk and bread as weak links who had profited on their part...
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Kenya Revenue Authority (KRA) Chairperson Anthony Mwaura uncovered little-known intrigues behind the wave of changes that saw the authority kick out top officials.
Mwaura revealed on Monday, February 27 that the taxman resorted to kicking out senior officials after discovering suspicious tax exemptions and refunds offered to individuals in former President Uhuru Kenyatta's government.
The chair in particular blamed firms dealing with milk and bread as weak links who had profited on their part by allegedly collaborating with senior KRA officials, further noting that Ksh5 billion tax refunds were paid to them for the latter part of last week.
Mwaura expressed his disappointment on the matter which came as KRA was convincing Kenyans to remit their taxes to meet its targets and to do away with unnecessary tax exemptions.
Kenya Revenue Authority Chairperson Anthony Mwaura taking his oath of office. /FILE
"There are firms dealing with milk and bread that were given Ksh5 billion tax refunds as late as last week. This is a blatant abuse of office. We are pushing Kenyans to pay taxes and the KRA management was refunding people billions illegally.
"That is why we said enough is enough and purged them. We will through the help of Treasury ensure that unnecessary tax exemptions are reversed,” Mwaura said.
Mwaura further noted that Kenya as a whole lost roughly Ksh1 trillion in the last three years due to tax abandonment, exemptions, and refunds provided to both local and international companies.
He expressed confidence in recovering the amount, using all the available measures to do so.
"People think we are fighting a lost cause but they will be surprised. I have targets to meet with my board and I will not relent.
"We are committed, even if it means risking our lives to see the country become self-reliant on its taxes," he added.
The KRA chairperson highlighted that they have set a new target of Ksh2.7 trillion, which is an increase of Ksh400 billion from the previous target of Ksh2.2 trillion.
The taxman’s strategy to reach this target involves cracking down on tax cheats, preventing illegal refunds and unnecessary exemptions, and tackling corruption within the organization's workforce.
On Thursday, February 23, the KRA board announced a fresh wave of changes and among them was James Githii Mburu, who resigned as the Commissioner General to pursue personal interests.
At the same time, the board announced Rispah Simiyu as Mburu's replacement.
"The Board has today received the resignation letter of the Commissioner General FCPA Githii Mburu MGH, CBS who resigned to pursue personal interests. "Following the resignation, the Board has appointed FCCA, CS Rispah Simiyu (Mrs), Advocate, EBS to be the Acting Commissioner General KRA with effect from 23rd February 2023 until the position is substantively and competitively filled," the statement read in part.
To further enhance the revenue mobilization agenda and synergies in top management, the board also made the following changes:
- Pamela Ahago was appointed the Acting Commissioner of Domestic Taxes,
- David Mwangi was appointed as the Acting Commissioner of Customs and Border Control,
- David Yego was appointed the Commissioner in charge of Intelligence, Strategic Operations, Investigation and Enforcement
- Nancy Ng'etich was appointed Acting Commissioner of Corporate Support Services.
- Dr Mohammed Omar remained Commissioner of Strategy Innovation and Risk Management
- Dr Fred Mugambi Mwirigi remained Commissioner of Kenya School of Revenue Administration
- Paul Matuku remained Commissioner of Legal Services and Board Coordination
Mburu was highly unlikely to survive in office to serve under Board Chairman Antony Mwaura who battled multiple tax cases when former President Uhuru Kenyatta was in office in what President William Ruto’s faction termed as “political persecution.”
