According to MPs, KRA’s Rebranding Will Cost The Public Sh2.7 Billion

According to estimates provided to the National Assembly, proposed reforms at the Kenya Revenue Authority (KRA) will cost the public Sh2.7 billion.

KRA’s acting Commissioner for Corporate Support Services, Ms. Nancy Ng’etich, stated that the agency’s rebranding to Kenya Revenue Service (KRS) is intended to increase revenue mobilization and “being a service oriented organization” while presenting the agency’s estimates for the 2023–24 fiscal year before the Finance and National Planning Committee.

The rebranding project will be implemented in two parts over the course of the following six years, with each phase projected to cost Sh1.34 billion, Ms. Ng’etich said the committee led by Molo MP Kuria Kimani. The KRA rebranding initiative began in the fiscal year of 2021/22, and an allocation of Sh250 million has been suggested for the following fiscal year, which begins on July 1. But MP Joseph Makilap for Baringo North questioned the price.

“The statistics as mentioned in the document you have submitted to us will be consumed by the rebranding of KRA to KRS. Is it really required, and why should it be so expensive? enquired Mr. Makilap.

However, Ms. Ng’etich clarified that the rebranding involved more than just altering the company’s name; it also involved modernizing its systems and operations and changing its reputation from one of an organization that appeared to be monopolizing to one that was amiable.

According to Ms. Ng’etich, who argued for increased financing, “moving KRA to KRS is meant to make it more customer centric.”

With the passage of the Kenya Revenue Authority (Amendment) Bill 2022 during the 12th Parliament, the rebranding of KRA officially began.

“The name change is intended to rebrand the authority in order to transform its public image and thereby enhance tax compliance through improved public relations and a clear focus on the needs and rights of taxpayers,” the Bill stated in part.

On June 9, 2022, at the committee stage, the Bill was withdrawn by the then majority leader, Amos Kimunya, since he did not agree with the revisions put up by Aden Duale, who is currently the defense minister. The National Assembly’s Standing Order 141 (1) was used by Mr. Kimunya, the Kipipiri MP at the time, in order to withdraw the Bill because several MPs were uncertain as to whether it was intended to limit the tenure of the commissioner-general, commissioners, and board chairperson and members.

A misunderstanding also existed regarding whether the commissioner-general, board chairperson, and members’ terms should begin as though they had just been appointed.

In his proposal, Mr. Duale suggested that the commissioner-general be chosen by the board in a competitive procedure and appointed by the President with the National Assembly’s consent. Additionally, he wanted the commissioner-general to be eligible for reappointment after serving for the required four years, pending satisfactory performance.

According to the KRA Act, the commissioner-general would be chosen on the board’s advice by the cabinet secretary of the National Treasury.

However, Mr. Kimunya was not pleased with Mr. Duale’s suggestions at the time and retracted the Bill in accordance with standing order 140(1) of the National Assembly Standing Orders.


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