Blow to KRA as court halts implementation of new organisational structure
Business
By
Julius Chepkwony
| Feb 26, 2025
A High Court in Nairobi has ordered the Kenya Revenue Authority not to implement a new organisational structure.
Justice Bahati Mwamuye further directed KRA, National Treasury, Salaries and Remuneration Commission, and Public Service Commission to preserve all documents regarding the new structure, including all internal and external communications, financial and expenditure records, and advisories.
The petitioner, Trusted Society of Human Rights Alliance, argued that KRA was set to roll out the structure that it says is unconstitutional.
KRA's current 10-tier grading levels, says the petitioner, have been increased to 14.
"If the new structure is implemented, there will be serious financial implications as the number of the KRA employees will double and the wage will balloon," the court papers say.
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The commission, as per the suit, has incorporated the Department of Supply Chain Management, Procurement and Internal Audit to the Office of the Commissioner General instead of the Department of Finance, which would amount to a conflict of interest and micromanagement of the procurement and audit processes, hence contravening the Public Procurement and Disposal Act and the Public Finance Management Act.
"KRA has used taxpayer's money in onboarding a consultant to conduct a structured review. Further, the implementation of the said organisational structure is not cost-effective but rather an irresponsible way of using public money," reads the petition.
Further, KRA is accused of malice and tribalism in the appointment of acting managers in preparation for the implementation of the structure. The filing claims the board and the Commissioner General appointed the managers from one tribe, which is contrary to the Public Service under Articles 232 and 236 of the Constitution. [Julius Chepkwony]
The NGO notes that an audit report by the Auditor General indicates KRA has liabilities that are more than its assets by Sh9 Billion.
The NGO chairperson Elijah Sikona stated that the implementation of the Organisational Structure by KRA is unconstitutional as the process was conducted without public participation.
Sikona wants the court to declare that the KRAs approved organizational structure and the internal communication by the Commissioner General on the implementation of the Organisational Structure is unlawful, unprocedural, and unconstitutional and in violation of Articles 10, 47, 232, and 236 of the Constitution.
The court he said should issue orders quashing the approved organizational structure.