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REMARKS BY MR. M.G. WAWERU, COMMISSIONER GENERAL,
KENYA REVENUE AUTHORITY, AT THE OFFICIAL LAUNCH OF
CELEBRATIONS TO MARK THE 2008 TAXPAYERS’ WEEK
TIMES TOWER, MONDAY 13 TH OCTOBER, 2008
The Ag. Minister for Finance represented by Assistant Minister in
the Ministry of Finance Hon. Dr. Oburu Oginga M. P.
Permanent Secretary, Ministry of Finance, Mr. Joseph Kinyua,
Chairman of KRA Board of Directors, Mr. Leonard Mwangola,
Senior Government Officials in attendance,
Members of the Board, Management and Staff of KRA,
Distinguished Taxpayers,
Ladies and Gentlemen
It gives me great pleasure and privilege to be in your midst today to participate in this
year’s Taxpayers’ Week. The activities to mark the Taxpayers’ Week are officially
beginning today in all the KRA regions countrywide. This week gives our taxpayers and
other stakeholders an opportunity to audit our service delivery, and share with us their
opinions and ideas on how to improve on them. It is also an opportunity for us to express
our sincere gratitude to taxpayers for their support. Kenya Revenue Authority takes
seriously the privilege of partnering with our cherished taxpayers to help the Government
mobilise the much-needed financial resources for development. It is indeed for this
reason that Taxpayers Week is a very special week in the calendar of KRA, and our
country.
Ladies and Gentlemen
As may be recalled, KRA was created in July 1995 to provide an efficient and effective
framework for assessment and collection of government revenues, lift our people out of
the endemic poverty which had characterised many parts of the country. Today, thirteen
years later, we stand before you for an objective assessment of the accomplishment of
this onerous mandate.
Allow me to state without any fear of contradiction that KRA has in the recent past been
able to contribute, significantly toward a better understanding between the Government
and its citizenry. This, we have achieved through sustained taxpayer education and
sensitisation, a program that has targeted not only the empowerment of the taxpayers with
relevant tax information and knowledge, but also infusing a sense of patriotism among
Kenyans.
The KRA’s clarion call “Tulipe Ushuru, Tujitegemee” should therefore, be understood as
a rallying call to Kenyans to take charge of their destiny by paying all their taxes as they
fall due. Many of the Emerging Economies in Asia and South America have long learnt
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that a country can only grow on a sustainable manner through its own locally generated
resources. This is the only sure way to safeguard a country’s independence, and enhance
sovereignty and national pride.
Ladies and Gentlemen
Five years ago, we set on an ambitious path of reforms and modernisation of our
processes and procedures. The reform agenda envisaged to weed out a few people who
were used to the status quo, from their comfort zones characterised by paper pushing,
cutting corners and rent-seeking behavior. The beneficiaries of the inefficient,
bureaucratic and unpredictable state of affairs viciously resisted our reform and
modernisation program. In fact, some of them went as far as sponsoring street
demonstrations against us.
Looking back to those acrimonious days, one wonders whether those opposed to our
programs really understood what they were opposing, in the first place. Today, none of
them wants to go back to the manual, unprofessional and unpredictable processes of those
years. The KRA’s reform and modernisation program has registered impressive results
in terms of drastic reduction in cargo clearance lead times, leveling of playing field for all
businesses and enhancement of professionalism in tax administration.
Ladies and Gentlemen
As the international trade continues to grow in complexity, and the world more insecure
arising from activities of terrorists, the need to enhance the capacity of Customs has
never been more urgent. The reforms at the port of Kilindini, and other areas of entry and
exit are therefore, not only aimed at facilitating the international trade, but also enhancing
the capacity of our country to detect harmful substances and weapons that might
endanger the welfare of our people. We have also taken deliberate steps to enhance our
capacity for surveillance with regard to international terrorist activities. These activities
are being handled concurrently with the other responsibilities of Customs, namely;
collection of international trade statistics and revenue collection.
Other departments have also undertaken reforms, aimed at enhanced service delivery to
the taxpayers. The curving out of the Large Taxpayers’ Office (LTO) from the Domestic
Taxes Department (DTD) in 2006 was aimed at providing specialized services to
taxpayers based on their unique needs, in terms of size, contribution to revenue and
sector. The LTO concept has tremendously improved specialisation, and through the
taxpayer segmentation approach, facilitated better understanding between the tax
authorities and taxpayers.
Similarly, introduction of the Turnover Tax (TOT) targets small taxpayers who face
tremendous challenges with regard to cost of compliance, record keeping, and their
migratory nature. The TOT has simplified tax payment, and ensured that small taxpayers
are not subjected to requirements that only apply to large taxpayers. This has ultimately
reduced costs involved in determining tax liability and filing tax returns, and improved
compliance of this sector. The success of TOT will depend, to a large extent, on the
willingness of the small taxpayers to co-operate with revenue officers. My appeal to you
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TOT payers is to embrace this tax so that we can quickly put behind us the hide-and-seek
games of the yester years.
Ladies and Gentlemen
I would be doing a great deal of disservice to you if I did not mention that your wonderful
patriotism and co-operation with KRA has made a big difference in availing the financial
resources needed for development. In the Fiscal Year 2007/08, the Authority collected a
total of Kshs. 434 billion compared to Kshs. 360.1 billion in 2006/07. The significance of
this revenue performance lies not only in the fact that the revenue grew by about 20.5%,
but more importantly that KRA for the first time joined the Kshs. 400 billion league. The
Authority is sparing no effort to meet and surpass the 2008/09 revenue target of Kshs.
493 billion. Meeting this revenue target is crucial for us if we are to recoup the revenue
shortfalls occasioned by the post-election violence experienced early this year.
In conclusion, I wish to reiterate that this Taxpayers’ Week is dedicated to our esteemed
taxpayers, to appreciate them for standing by us in this noble responsibility of mobilizing
finances for national development. In this regard, I would like to call upon our taxpayers
countrywide to renew their partnership with KRA, and continue sharing useful
information for the mutual benefit of both. This way, we will move together toward
achieving KRA’s vision: To be the Leading Revenue Authority in the World Respected
for Professionalism, Integrity and Fairness.
I would like to take this opportunity to sincerely thank you for turning up in large
numbers to witness the launch of this year’s Taxpayers’ Week. It is a clear manifestation
of the growing partnership and confidence between KRA and taxpayers.
I now wish to invite the Chairman of KRA Board of Directors, Mr. Leonard Mwangola,
to give his remarks, and welcome the Minister.
Tulipe Ushuru, Tujitegemee.
Thank you.
M.G. WAWERU, EBS
COMMISSIONER GENERAL, KRA
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