Three more years for Njiraini at tax agency
What you need to know:
- Mr Njiraini is credited with rolling out technology and legal systems to enhance tax compliance and increase overall revenue collection. Mr Madoka said technological systems such as iTax and electronic goods management have led to a reduction in cost of collecting taxes.
- Mr Njiraini, however, has the uphill task of ensuring the taxman collects the projected Sh1.08 trillion for the current financial year, having already missed the first quarter’s target by Sh17 billion.
- KRA had projected revenue collection for the second quarter to grow by 19 per cent so as to remain on track for meeting the current financial year’s target.
Treasury Cabinet Secretary Henry Rotich has retained John Njiraini as Kenya Revenue Authority Commissioner General for a second three-year term beginning Wednesday.
The reappointment follows Tuesday’s expiry of his first tenure since January 2012 at the top of the tax agency, a period within which he has been credited with significantly increasing revenue collection.
In a statement, KRA Chairman Marsden Madoka said Mr Njiraini’s term had seen the taxman register record high revenue collection.
“I am pleased to announce that upon recommendation of the board of directors, the Cabinet secretary to the National Treasury has approved the re-appointment of Mr John Karimi Njiraini …. for a period of three years,” he said.
Mr Njiraini was appointed to KRA in 2012 by Finance Minister Uhuru Kenyatta, now the President, and replaced Mr Michael Waweru.
Before this, he had been the domestic taxes commissioner in charge of large taxpayers’ office. Mr Njiraini is credited with rolling out technology and legal systems to enhance tax compliance and increase overall revenue collection. Mr Madoka said technological systems such as iTax and electronic goods management have led to a reduction in cost of collecting taxes.
UPHILL TAX
In the 2011/2012 financial year, KRA collected Sh707.3 billion in taxes which increased to Sh963.8 billion the following year.
Mr Njiraini, however, has the uphill task of ensuring the taxman collects the projected Sh1.08 trillion for the current financial year, having already missed the first quarter’s target by Sh17 billion.
KRA had projected revenue collection for the second quarter to grow by 19 per cent so as to remain on track for meeting the current financial year’s target.
Major restructuring
Last month, the KRA commissioner general told Smart Company that the authority was undergoing a major restructuring, whose planning is now in the final stages. The new structure will see it comprise two semi-autonomous but interdependent agencies – an inland revenue agency and a customs and border protection agency.
Already, the National Treasury Cabinet secretary has, in this year’s budget policy statement, given notice that he will be sending two Bills to Parliament for enactment to give the new structure legal backing.
