KRA DISCIPLINARY CASES 2004-2005 - Kenya Revenue Authority

KRA DISCIPLINARY CASES 2004-2005 

1. INTRODUCTION 

To uphold the Authority’s vision of being the Leading Revenue Authority in 

the world respected for professionalism, integrity and fairness, the Authority 

has revised its Code of Conduct with emphasis on certain aspects in the 

regulations that needed improvement in order to make the disciplinary process 

objective, more effective and fair. 

To strengthen the Disciplinary Committee (DISC) and maintain consistency in 

decision making, the Authority has reconstituted the committee to comprise 

the commissioners and heads of, Human Resources, Finance, Investigations & 

Enforcement and Board Secretary as members, with the Commissioner of 

Support Services being the chairman and the Commissioner General the 

approving authority. 

The revised code of conduct has incorporated chapter 17 of the Employment 

Act Cap 226, the Public Officers Ethics Act 2003, Chapter 14 of the KRA Act 

CAP 469 and, the KRA Integrity Action Plan. 

Other new items introduced in the revised code of conduct are interdiction, 

payment of house allowance to staff on interdiction / suspension and the 

Grievance Handling procedure. 

The Level of responsibility of the DISC has also changed with cases for staff in 

KRA 1-3 being heard by the staff committee whereas the DISC hears cases for 

staff in KRA 4 to 17. 

Appeals for officers in KRA 1-3 shall be determined by the KRA Board of 

Directors while those of staff in other grades will be determined by the 

Commissioner General. 

The Authority through the Staff Disciplinary Committee has in the past one 

year handled 53 Disciplinary cases touching on varied offences. 

While deliberating on the cases, the Committee examines documents presented, 

hears the employees’ defences and also examines the evidence from 

investigators before recommending the appropriate penalty to the 

Commissioner General for approval who may accept the Committee’s 

recommendation or impose a different penalty. 

In determining the penalty the committee looks at the seriousness of the 

offence committed, the extent of involvement, employment records and any 

other relevant circumstances surrounding the case. 

Disciplinary cases Page 1 of 13

The table below gives a summary of the offences per Department and by 

nature of offence. Thereafter details on each case and the penalty applied are 

given. 

SUMMARY OF DISCIPLINARY CASES FOR THE PERIOD JULY 2004 TO JULY 2005 

DEPT. 

Fraud/ 

Theft 

Corruption/Collusion/ 

Soliciting for bribes 

OFFENCE 

Misconduct* 

Absenteeism/Desertion 

/Lateness 

Total 

per 

Dept. 

CUSTOMS 15 3 7 1 26 

DTD 1 4 4 1 10 

RTD 4 0 3 2 9 

HQS 3 0 2 3 8 

Total 

Offence 

per 

23 7 16 7 53 

*Misconduct includes such offences as: 

Insubordination, being disrespectful or discourteous to colleagues or tax payers, 

Misuse of Authority’s property 

Granting press interviews without authority and 

Other offences that do not properly fit under the given headings 

2. CASES DEALT WITH BY NATURE OF OFFENCE 

2.1. FRAUD 

2.1.1 Case Ref: DISC/07/07/2005 

Department(s): ROAD TRANSPORT /MIS 

Station(s): 

MOMBASA/NAIROBI 

CHARGE: 

STEALING BY PERSONS EMPLOYED IN THE 

PUBLIC SERVICE CONTRARY TO SECTION 280 OF 

PENAL CODE AND CONTRAVENTION OF 

SECTIONS 4.1.1, 4.1.9, & 4.1.25 OF THE KRA CODE OF 

CONDUCT 

PARTICULARS OF OFFENCE 

Between May and September 2004 a cashier in Road 

Transport Department did not surrender to the Chief 

Cashier over Kshs.16 million collected as revenue. An 

audit/Investigation carried out established that the fraud 

was through manipulation of the cash receipting system at 


the main RTD server where the printing of some specific 

high value receipts was suppressed making it possible for 

the cashier to withhold the money thereon and not reflect 

the same in the daily reports. It was established that the 

cashier colluded with two Management Information 

Systems Officers. 

PENALTY: 

The Cashier was dismissed for fraud and the two MIS 

officers Retired in Authority’s Interest for questionable 

credibility and loss of confidence. 

___________________________________________________________ 

2.1.2 Case Ref: DISC/07/07/2005 

Department: ROAD TRANSPORT 

Station: 

NAIROBI 

CHARGE: 

FRAUD IN CONTRAVENTION OF SECTIONS 

4.1.1, 4.1.9, & 4.1.25 OF KRA CODE OF CONDUCT 

PARTICULARS OF OFFENCE: 

An Audit by the Kenya National Audit office for the 

period ending 30 th June 2004 revealed two RTD cashiers 

involvement in fraudulent activities through irregularly 

undercharging road licence fees to vehicles with high 

engine capacity ratings, which require high licence fees thus 

resulting in loss of revenue due to the Authority. 

Investigations carried out established that the cashiers were 

indicating the correct amount paid on the taxpayer’s copy 

and a smaller amount equivalent to the rate chargeable to 

the low licence fee vehicles on the duplicate receipt book 

and pocketing the difference. Over Kshs.570,000 revenue 

was lost. 

PENALTY: 

The two cashiers were dismissed for fraud. 

___________________________________________________________ 


2.1.3 Case Number: DISC/20/1/2005 & 22/04/2005 

Department: CUSTOMS SERVICES 

Station: 

MOMBASA 

CHARGE: CONSPIRACY TO DEFEAT THE 

ENFORCEMENT OF THE CUSTOMS & EXCISE 

ACT, CONTRARY TO SECTION 395(a) OF THE 

PENAL CODE AND CONTRAVENTION OF 

SECTIONS 3.17, 4.1.1, 4.1.9, & 4.1.25 OF THE KRA 

CODE OF CONDUCT. 


Three Customs Officers among them 2 manifest officers 

and a verifying officer facilitated the release of goods 

without payment of duty. 127 containers at a Container 

Freight were cleared but duty collected for only 55 

containers resulting in revenue loss of Kshs.24 million. On 

investigations it was established that 15 entries had been 

lodged with falsified supporting documents where Bills of 

Lading bore fewer quantities than indicated on the 

manifests. The manifest officers endorsed “no 

discrepancy” on entries that bore information that did not 

tally with that on the manifests and Bills of Lading whereas 

the verifying officer irregularly released goods whose details 

on the entry differed from those on the in-house manifests. 

PENALTY: One of the manifest officers was retired in Authority’s 

Interest for negligence of duty whereas the other 2 officers 

were dismissed for fraud. 

___________________________________________________________ 

2.1.4 Case Number: DISC/22/04/2005 


Station: MOMBASA 

CHARGE: 

CONSPIRACY TO DEFRAUD KRA CONTRARY 

TO SECTIONS 3.17, 4.1.1, 4.1.9, & 4.1.25 OF THE 

CODE OF CONDUCT 



Two Customs revenue officers irregularly processed and 

verified an entry facilitating clearance of some containers 

without payment of appropriate duty. Revenue amounting 

to Kshs2.8 million was lost. A subordinate staff member 

gave out the original of this same entry to a clearing agent 

facilitating the loss of the said entry, which had been 

irregularly processed and used to clear goods without 

payment of duty. 

PENALTY: 

The two revenue officers were dismissed for conspiracy to 

defraud and the subordinate staff retired in Authority’s 

interest for loss of confidence in her as an employee. 

___________________________________________________________ 



Station: NAIROBI-JKIA 

CHARGE: 

CONSPIRACY TO DEFRAUD THE AUTHORITY 

& CONTRAVENTION OF SECTIONS 4.1.1, 4.1.4 

&4.1.9 OF THE KRA CODE OF CONDUCT 


A revenue officer at JKIA irregularly granted authority for 

transhipment of a consignment from JKIA-Nairobi to Moi 

Airport Mombasa when the release order clearly indicated 

the consignee’s address as Westlands in Nairobi. The goods 

were intercepted by the surveillance and targeting unit at 

the delivery gate on their way to Westlands. It was argued 

that since the importer was from Nairobi there was no 

intention to tranship the goods to Mombasa and the issue 

of transhipment did not arise as transhipment applies only 

where goods are transferred to another vessel destined to a 

foreign country. The officer’s actions were thus intended to 

evade duty payable. 

PENALTY: The officer was retired in Authority’s Interest. 

___________________________________________________________ 


2.1.6 Case Number: DISC/22&24/06/2004 



CHARGE: 

CONSPIRACY TO DEFRAUD CONTRARY TO 

SECTIONS 317 OF PENAL CODE AND 

CONTRAVENTION OF SECTION 3.15 & 4.1.27 OF 

KRA CODE OF CONDUCT 


A customs revenue officer and an accountant were arrested 

and arraigned in court on charges of conspiracy to defraud 

the Authority of Kshs.9,155,192 revenue. Investigations 

carried out revealed that the fraud was committed through 

the substitution of cheques received at Kilindini for 

payment of oil products with some ‘dummy’ cheques which 

had been received at Longroom Mombasa and which had 

purportedly been used to clear dry goods. 

PENALTY: 

The Accountant was dismissed and the Revenue officer 

retired in Authority’s interest. 

___________________________________________________________ 


Department: DOMESTIC TAXES 

Station: NAIROBI 

CHARGE: 

CONSPIRACY TO DEFRAUD KRA CONTRARY 

TO SECTIONS 3.17, 3.20, 3.59, & 4.1.1 & 4.1.25 OF 

THE KRA CODE OF CONDUCT 


A revenue officer in Domestic Taxes Department Nairobi 

imported and cleared goods duty free on the pretext that 

the consignee was MRC EPZ. The goods, which the officer 

had declared to be rolls of cotton fabric, were later verified 

and confirmed to be assorted hawker goods, which resulted 

in loss of revenue. The officer further assisted a tax evader 


to import a container of canned beef purported to be 

supplied to Department of Defence by attempting to alter 

the bill of lading to read Department of Defence as the 

consignee in order to evade payment of duty. 

PENALTY: The officer was dismissed on gross misconduct grounds. 

___________________________________________________________ 

2.2 CORRUPTION/EXTORTION 


Department: DOMESTIC TAXES 


CHARGE: DEMANDING MONEY WITH MENACES 

CONTRARY TO SECTIONS 302 OF THE PENAL 

CODE AND CONTRAVENTION OF SECTIONS 

3.1, 3.2, 3.3, 3.4, 3.5, 3.18 AND 4.1.14 OF THE KRA 

CODE OF CONDUCT 


Two Revenue officers were arrested and arraigned in court 

for demanding Kshs.5 million with menaces from a 

taxpayer. Acting on a tip off the RPS with the CID laid a 

trap where Kshs.700, 000 was packed in bundles of plain 

paper disguised under Kshs.10, 000 notes. The trader 

arranged for a meeting with the officers one of whom was 

arrested on receiving the money and the other soon after. 

PENALTY: 

The two officers were dismissed on gross misconduct 

grounds for lack of integrity and questionable credibility. 

___________________________________________________________ 


2.3. DISHONESTY/ NEGLIGENCE OF DUTY 


Department: ROAD TRANSPORT 


CHARGE: CONTRAVENTION OF SECTIONS 3.17, 4.1.3, 4.1.4 

& 4.1.9 OF THE KRA CODE OF CONDUCT 


Two RTD officers one an approving officer and the other 

a cashier, approved and issued a road licence to a PSV 

vehicle that had not complied with the Traffic Act 

requirement that an inspection certificate has to be 

produced before a licence can be issued. The two had also 

been implicated as having been involved in the issuance of 

a fake TLB licence as a result of which they were arrested 

and arraigned in court charged with forgery of official 

documents. 

PENALTY: The two were dismissed for gross negligence of duty and 

questionable integrity. 

___________________________________________________________ 



Stations: LOITOKITOK, TAVETA, BUSIA 

CHARGE: 

DISHONESTY/ NEGLIGENCE OF DUTY 

CONTRARY TO SECTIONS 3.17, 4.1.1, & 4.1.9 OF 



In an undercover operation necessitated by persistent 

reports on rampant irregularities at the Customs Border 


Stations, entries purported to be exporting goods across 

the borders were presented to Customs officers. The 

revenue officers in these stations endorsed the export 

entries without verifying the existence of the goods and the 

vehicles transporting the goods, which is against the 

standard procedure. The Preventive guards on the other 

hand entered the entries in the outward rotation registers 

without seeing the goods as is required. The officers 

received money from the presenters of the entries as an 

inducement to pass the entries and allow the goods cross 

the borders against the standard procedure. 

PENALTY: The revenue officers were retired in Authority’s Interest for 

negligence of duty and questionable integrity whereas the 

services of the Preventive Guards were terminated for 

dishonesty, lack of integrity and loss of confidence in them 

as employees. 

___________________________________________________________ 

2.4. THEFT 



Station: NAIROBI - JKIA 

CHARGE: 

STEALING BY PERSONS EMPLOYED IN THE 

PUBLIC SERVICE CONTRARY TO SECTION 280 

OF PENAL CODE AND CONTRAVENTION OF 

SECTIONS 4.1.1, 4.1.9, & 4.1.25 OF THE KRA CODE 

OF CONDUCT 


Two cashiers attached to the Directorate of Civil Aviation 

stole a total of USD104, 025 equivalent to Kshs.8.2 million 

which they had received as revenue on Air Navigation 

charges at JKIA in a span of two years. They were arrested 

and arraigned before the Anti-corruption court charged 

with the offence of stealing by persons in the Public 

service. Investigations established that they stole this 

money through falsification of receipts, by indicating the 

correct amount collected on the original receipt to the 

client, and less on the duplicate copy for KRA. They would 


then amend the copy from DCA advising on how much to 

collect to tally with the copy receipt. 

PENALTY: The two were dismissed on gross misconduct grounds. 

___________________________________________________________ 

2.4.2 Case Number: MISC/21/03/2005 

Department: HQS-TRAINING 


CHARGE: 

THEFT IN CONTRAVENTION OF SEC.4.1.27 OF 



A graduate trainee at KRATI - Mombasa took his 

roommates ATM card and PIN number and withdrew 

money from the roommate’s bank account. 

PENALTY: 

The trainee was expelled from KRATI and his training 

terminated on grounds of gross misconduct. 

___________________________________________________________ 

2.5. MISCONDUCT 




CHARGE: 

OBTAINING MONEY BY FALSE PRETENCES 

CONTRARY TO SECTION 313 OF THE PENAL 

CODE & CONTRAVENTION OF SECTIONS 4.1.1 

OF KRA CODE OF CONDUCT 


A preventive Guard obtained over Kshs.200,000 from 

unsuspecting taxpayers promising to assist them pay import 

duty and clear vehicles. The officer would then convert the 


money into personal use and not assist them at all. On 

learning that the misdeeds had been reported to the office, 

the officer deserted duty. 

PENALTY: The officer was dismissed from duty on grounds of gross 

misconduct for dishonesty and lack of integrity. 

___________________________________________________________ 

2.6. DESERTION/VACATION OF OFFICE 

2.6.1 Case Number: MISC/18/07/2005 



CHARGE: DESERTION/VACATION OF OFFICE 

CONTRARY TO SECTION 17(a) OF THE 

EMPLOYMENT ACT CAP 226 AS STATED IN 

SECTION 4.1. OF KRA CODE OF CONDUCT 


An officer requested for permission to travel to the USA 

during her annual leave. A week after she was supposed to 

resume duty, she faxed a request to be granted a two year 

study leave to pursue a degree course. The request was 

declined and the decision communicated to her. It was held 

that the absenteeism was unauthorised and the officer was 

considered to have deserted duty. 

PENALTY: 

The officer was dismissed for desertion/vacation of office 

and later retired in Authority’s interest upon appeal. 

___________________________________________________________ 


2.6.2 Case Number: MISC/5/07/2005 & 7/09/2004 

Department: ROAD TRANSPORT /CUSTOMS SERVICES 


CHARGE: DESERTION/VACATION OF OFFICE 

CONTRARY TO SECTION 17(a) OF THE 

EMPLOYMENT ACT CAP 226 AS STATED IN 

SECTION 4.1. OF KRA CODE OF CONDUCT 


An officer attending a conversion course at KRATI 

Mombasa requested for permission to visit a sick spouse. 

Two months passed without the officer returning to class 

or communicating to the office. 

In a similar case another officer applied for leave of 

absence to join the spouse in the USA. The officer did not 

resume duty as expected nor communicate to the office. A 

third officer applied to proceed on annual leave but did not 

resume duty upon expiry or communicate to the office. It 

was held that the absenteeism was unauthorised and the 

officers were considered to have deserted duty. 

PENALTY: The three officers were dismissed for desertion/forfeiture 

of appointment. 

_____________________________________________________________ 

3. COURT CASES 

Where KRA employees are arrested by police, Kenya Anti Corruption 

Commission, the Anti-Banking Fraud Unit or any other body and arraigned 

before court, the Authority as laid out in Section 9 of the Code of Conduct 

shall not be deterred by the court proceedings to take disciplinary action against 

the officer, neither will acquittal or any other outcome of proceedings be 

binding to the Authority. 

Further as per Section 17(f) of the Employment Act CAP 226 Laws of Kenya 

and, as stated in section 4.1 of the KRA Code of Conduct, the Authority may 

dismiss an employee “ If, in the lawful exercise of any power of arrest given by 

or under any written law, an employee is arrested for a cognisable offence 


punishable by imprisonment and is not within ten days either released on bail 

or on bond or otherwise lawfully set at liberty”. 

_____________________________________________________________ 

4. DURATION OF CASES 

As stated in sections 6.A.(h) and 6.B.(g) of the Code of Conduct, the Authority 

will endeavour to finalise cases possibly within three months by ensuring that 

exhaustive investigations are carried out even before an officer is charged with 

an offence. However, in certain circumstances where the process cannot be 

completed within the three months, the Commissioner General may at his 

discretion extend the period depending on the circumstances. 

5. CONCLUSION 

The Authority is committed to creating enabling environment for all staff to 

pursue a fulfilling career within the Authority and thus contribute with pride to 

the building of the nation. 

The Authority calls on all to uphold and live by our vision which stipulates 

that “It is our Vision to be the Leading Revenue Authority in the World respected for our 

Professionalism, Integrity and Fairness”.

KRA DISCIPLINARY CASES 2004-2005 - Kenya Revenue Authority

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