KRA Sh2b salary hike sparks legal dispute amid structural reforms
National
By
Julius Chepkwony
| Mar 26, 2025
Kenya Revenue Authority’s (KRA) ="https://www.standardmedia.co.ke/business/business/article/2001514649/reprieve-for-kbl-in-sh4863-million-tax-dispute-with-kra">annual salary expenditure will rise by over Sh2 billion< if its new organizational structure is implemented.
The proposed structure is currently the subject of a court case filed by the Trusted Society of Human Rights Alliance.
Court documents reveal that in August, KRA sought additional funding for staff salaries. In a letter dated August 24, 2024, to Treasury Cabinet Secretary John Mbadi, KRA noted that staff salaries were last reviewed in July 2015.
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The letter, signed by Commissioner General Humphrey Wattanga, states that KRA engaged a consultant to ="https://www.standardmedia.co.ke/business/business/article/2001512725/blow-to-kra-as-court-halts-implementation-of-new-organisational-structure">assess the current organizational structure<, identifying strengths, areas for improvement, and alignment with government guidelines.
According to Wattanga, the assessment involved consultations with KRA staff at all levels and a review of global best practices, along with multiple internal and external reports focusing on critical aspects of KRA’s performance.
The review aimed to offer a competitive compensation package to attract, retain, and motivate staff. As a result, annual staff salaries and pensions would increase from ="https://www.standardmedia.co.ke/business/business/article/2001510646/kra-needs-to-collect-sh8b-daily-to-hit-sh26tr-june-target">Sh20.9 billion to Sh23.4 billion.<
He noted KRA Board approved the proposed organizational structure, critical recruitments, and salary increments, recommending them to the National Treasury for approval.
“The proposed 14-tier structure currently has a staff establishment of 9,505 employees,” the letter said.
KRA, through Dr Emmah Omwenga, Deputy Commissioner of Human Resource Management, confirmed that the new structure was implemented on February 21, 2025.