KRA succession plan in limbo as Njiraini goes to court

The Kenya Revenue Authority (KRA) is facing major changes in the next few months as the tenure of three senior managers comes to an end, even as the dispute over the impending retirement of the Commissioner-General plays out in public.  

Activist Okiya Omtatah has moved to court challenging Commissioner-General John Njiraini’s continued stay in office.

But the Sunday Nation has learnt that contracts for Mr Benson Korongo (Commissioner Domestic Taxes), Ms Beatrice Memo (Head of Training Institute) and Pancrasius Nyaga (Deputy Commissioner in charge of Risk) expire in May.

Despite the apparent transition period facing KRA, there are still unresolved issues on Mr Njiraini’s desk, which continue to deserve his attention in the near future.

READ: Uhuru orders lifestyle audit of KRA staff

TERMINAL LEAVE
In 2012, over 50 KRA staff were sent on compulsory leave and they have been on half pay since then with no end in sight for their cases being resolved.

Moreover, a lifestyle audit ordered by President Kenyatta in 2015 is yet to be finalised, begging questions whether it will ever be concluded.

In the court case, Mr Omtatah argues that Mr Njiraini should be on terminal leave, pending his retirement.

Mr Omtatah argued that Mr Njiraini reached the mandatory retirement age of 60 on December 19, 2017, and should therefore be serving a six-month terminal leave.

He wants the court to compel the KRA board of directors and the Treasury Cabinet Secretary Henry Rotich to immediately appoint an acting Commissioner-General and at the same time send Mr Njiraini on terminal leave.

RETIREMENT AGE
He accused the board and Mr Rotich of neglecting their duties, and breaching the law on the 60 years mandatory retirement age for public servants.

The activist says the Human Resource Policies and Procedures Manual for the Public Service, dated May 2016, provide that the mandatory retirement age of all officers shall be 60 years and 65 years for persons with disabilities.

“The petitioner reiterates his submission that the existing law supersedes any contract made thereunder.

"Hence, the interested party’s employment contract is void to the extent that it states that the contract expires on March 4, 2017, which is some 73 days after the interested party attains the mandatory retirement age of 60 on December 2, 2017,” he argues.

In reply, both the board and Mr Njiraini argued that the suit is speculative and an abuse of the court process.

Mr Njiraini further stated that he has not applied for an extension of his term, which comes to an end on March 3, 2018.

RECRUITMENT
The board chairman, Dr Edward Sambili, said Mr Njiraini has not applied for extension of his contract and the allegations are therefore baseless.

He said the remaining period, before March 3, is adequate enough for the board to take necessary steps and recruit another Commissioner-General.

Dr Sambili wants the court to dismiss the case, saying it does not disclose any cause of action and indeed amounts to an abuse of court process.

He further states that Mr Omtatah has failed to demonstrate how Mr Njiraini’s position has infringed on his rights.

Mr Njiraini will continue serving as KRA boss pending the determination of the suit.

“It is the petitioners own admission that there exists no constitutional or statutory provision that provide for a mandatory retirement age in public service. 

"Interestingly, the crux of his petition is on the issue of mandatory retirement age,” KRA lawyers submit.

STAFF CONTRACTS
Justice Nelson Abuodha ruled that the case should be concluded before March 3, the date when Mr Njiraini is expected to have left office.

The case will be mentioned on Wednesday, February 7.

For the three senior managers, the Commissioner General is supposed to give notice of renewal or otherwise six months before end of term, which has not happened, putting the officers continued stay in office at a precarious legal position.    

KRA however downplayed the succession conundrum.

“The developments alluded here are not necessarily accurate. As a responsible corporate organisation, all our Human Resources matters are dealt with individually as necessary.

"The Authority maintains a robust succession plan, which provides continuity where necessary.

"All contracts entered with the authority are within specific timelines and expire/enjoy renewal on an individual basis; certainly within legal limits,” Commissioner Corporate Support Service, Mr Ezekiel Saina, said.

SUSPENDED STAFF
On the fate of the more than 50 officers who were suspended, Mr Saina said the issues are under consideration.

“As per the KRA HR Manual and policies, officers suspended on specific grounds including legal matters continue to earn half pay until the matter is resolved.

"We have tens of cases that have been legally resolved in the courts of law leading to acquittals or convictions against some of our officers.

"Where an acquittal has been entered, such officers have resumed their duties.

"Where the trials are still ongoing, the officers continue to earn the requisite dues. We are optimistic that such cases will be resolved speedily,” Mr Saina said.

KRA has consistently missed its revenue targets, a fact that was pointed out by the World Bank in a report in December last year.

World Bank pointed out that Kenya’s revenue is not growing as fast as its economy.

In 2015, KRA said it would conduct a lifestyle audit of its employees. This has not started.