MPs Reject Bid to Strip KRA Board of Hiring Powers

NAIROBI, Kenya – MPs have reinstated the Kenya Revenue Authority (KRA) board’s authority in appointing deputy commissioners, rejecting a government-backed proposal to sideline the board in favor of the Commissioner General.

The National Assembly’s Finance Committee turned down the KRA (Amendment) Bill (No. 2) 2024, which sought to grant the Commissioner General exclusive powers to hire senior officers without board oversight.

The amendment, sponsored by Majority Leader Kimani Ichung’wah, had proposed deleting a key provision of the KRA Act that placed the board at the center of senior appointments.

Under the proposed changes, Section 13 of the KRA Act would have been revised to state: “The Commissioner General shall appoint such deputy commissioners as may be deemed necessary,” effectively cutting out the board from the hiring process.

However, the committee, chaired by Molo MP Kimani Kuria, argued for retaining the board’s role to enhance transparency and accountability in senior appointments.

“The additional layer of oversight would ensure a transparent and accountable process in the selection of senior management, thereby strengthening the governance structure of the Kenya Revenue Authority,” the committee said in its report tabled before Parliament.

The report acknowledged that empowering the Commissioner General to make initial appointments could streamline decision-making within the tax agency, but emphasized that final approval must rest with the board.

“It is important for the deputy commissioner to be appointed by the Commissioner General, but subject to board approval,” the committee added.

The government’s push to dilute the board’s authority had sparked concerns about oversight and accountability, particularly since the Commissioner General serves as both the KRA’s CEO and accounting officer.

Critics questioned the practicality of excluding the board from senior staffing decisions, especially given the critical role deputy commissioners play in managing KRA’s operations and attending board meetings when commissioners are absent.

This isn’t the first attempt to reduce the KRA board’s powers. Similar proposals in the Finance Bill, 2023, and the now-withdrawn Finance Bill, 2024, met resistance amid protests over governance and accountability risks.

The KRA currently operates with seven commissioners overseeing key divisions, including Customs and Border Control, Domestic Taxes, Intelligence and Enforcement, and Corporate Support Services.

Deputy commissioners, while part of KRA’s senior leadership, do not hold voting rights at board meetings.

If the committee’s recommendations are adopted, the board will retain the final say in deputy commissioner appointments, balancing the Commissioner General’s role with a governance oversight layer aimed at strengthening accountability.