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KRA takes over revenue collection duties in Nairobi

The implementation of the Deed of Transfer of functions between City Hall and the National Government has commenced with the Kenya Revenue Authority (KRA) taking over revenue collection in Nairobi.

This comes after the taxman was on Friday gazetted as the principal revenue collector for the capital city by Nairobi Finance and Economic Planning Executive Allan Igambi.

KRA will start the process of managing City Hall’s internal revenue collection from March 16, 2020 and will be in charge of the same for the next two years.

In between, the Authority is expected to avail mode of payment that Nairobi residents will use going forward as currently the residents are using unstructured supplementary service data with a short code (USSD) *235#, launched last year June, to pay for services digitally.

“Pursuant to Article 5.5 of the Deed of Transfer of function from the Nairobi County government to the National Government gazette on the February 25, 2020 and in accordance with section 160 of the Public Finance Management Act, 2012. The Nairobi County government appoints KRA as the principal agent for overall revenue collection for all county revenue, for a period of 24 months, with effect from the March 16, 2020,” the Gazette Notice dated March 6, 2020 read.

The move came shortly after the gazettment of Mr Igambi by Governor Mike Sonko as the substantive Finance CEC, replacing Pauline Kahiga. This finally brought an end to confusion at the office which the two claimed.

NO CAUSE FOR ALARM

The handover was presided over by National Treasury Cabinet Secretary Ukur Yatani, National Treasury Chief Administrative Secretary Nelson Gaichuhie, Controller of Budget Margaret Nyakango and KRA Commissioner General James Mburu on Friday in a meeting with other top City Hall officials.

Mr Yatani, speaking during the handover between Mr Igambi and Mr Mburu, said that the takeover by the Authority will not affect City Hall staff working in the Finance and Economic Planning department as they will have a huge part to play in the revenue collection process.

“There should not be cause for alarm as no one will lose their jobs. The decision to have KRA collect revenue on behalf of Nairobi County was arrived at following the signing of the Deed of Transfer between Nairobi County government and the State with the aim of enhancing efficiency and improving revenue collection,” said Mr Yatani.

On his part, Mr Igambi assured the National Government his office will work closely with the taxman by making available any relevant data or tools needed to make the process as seamless as possible.

“We will work closely with KRA and do everything necessary to help the agency carry on the process without any hiccups,” he said.