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NEWS & CURRENT AFFAIRS

The Nairobian

John Mbadi: Why reforming KRA will be my first priority

National

By Betty Njeru | Aug 03, 2024

If confirmed as the Cabinet Secretary for the National Treasury and Planning, John Mbadi says that reforming the Kenya Revenue Authority (KRA) will be his top priority.

According to Mbadi, the taxman’s system is broken and requires immediate reforms, including a reevaluation of its leadership.

During his vetting before the National Assembly Committee on Appointments on Saturday, August 3, Mbadi averred that the solution to revenue mobilisation lies not in introducing new taxes but in improving the efficiency of the tax collector.

“The solution should be targeting the tax collector. KRA is like a cow that we milk without feeding. The system KRA is using at the moment needs re-engineering,” Mbadi said.

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“We must reform KRA. Without that, we are not going to succeed in revenue mobilization. I will sit down with KRA as my first task.”

Public Debt and the Rejected Finance Bill

Mbadi acknowledged that Kenya’s public debt is a major concern and outlined how he plans to manage it if confirmed. He stated that debt accountability will be another top priority.

“We need to make our debt register a statutory document that should be published every year. If Kenyans owe people money, why can't they know who they owe, how much, and what the interest rates are for each loan?” he posed.

The Treasury CS nominee further expressed skepticism about the need for a new Finance Bill, suggesting that effective public participation could resolve some of the existing issues.

"I want to tell Kenyans, please don't panic. We don't have a lacuna. We have about five or six legislations that the Finance Bill usually amends. If I am approved, this house should help me bring these legislations specific to these statutes," he said.

“I believe the good provisions that have been lost in the Finance Bill, which are not contentious, can be brought as specific amendments with proper public participation. The problem we had was that the public felt they were not listened to,” Mbadi added.

Past Controversies

During the vetting process, Mbadi was questioned about his past remarks regarding the previous Cabinet, in which he referred to them as President William Ruto’s “skunk.”

“I am an MP, with a mandate to oversee and legislate. I have a mandate to vet and approve the president’s nominees. I am moving to the other side now, and it is up to MP Naisula and others here to determine if I am a skunk or not,” he responded.

When asked about advising the president, Mbadi asserted that he would be the principal advisor on financial matters if approved. He dismissed claims that advisors in the Cabinet have more influence than the Cabinet Secretaries themselves.

Mbadi is worth Sh380 million, accumulated from investments, mortgages, and Sacco loans as liabilities.

He resigned as the ODM chairman following his nomination to the Cabinet.