Barclays Bank boss causes stir in race to pick the new taxman

Barclays Bank of Kenya chief executive Adan Mohamed’s entry into the race for the top tax job has left the KRA board with a tough assignment of refereeing an epic duel that pits a strong field of insiders against high-flying outsiders.

Read: Search for new taxman begins as Waweru exits

Mr Mohamed’s ambition to succeed Michael Waweru as commissioner-general at the Kenya Revenue Authority (KRA) faces strong competition from four insiders and two other outsiders with vast experience in public finance.

Sources at KRA’s Times Tower headquarters told the Business Daily that the Barclays CEO is among the candidates who caused the most excitement at the short-listing stage and is expected to give his competitors a run for their money.

A Harvard Business School MBA graduate, Mr Mohamed is the regional head of Barclays in Kenya, Ghana, Uganda and Tanzania and a former chairman of the Kenya Bankers’ Association.

James R Njuguna and James Gituro Wahome, a macroeconomist and former Central Bank of Kenya employee, are the other outsiders shortlisted for the job.

Mr Wahome, who has been with the Tunis-based African Development Bank for 11 years, is also a member of the OECD team on effective aid.

This is the first time that the KRA board, chaired by Maj (rtd) Marsden Madoka, has advertised the position as well as those of commissioners.

Despite huge interest especially from the political circles, only 16 people are listed as having applied for the position. Indeed, some of the big names recently said to have had an interest in the job are missing from the list that was published in advertisements in yesterday’s newspapers.

Those shortlisted for the top KRA job include two outgoing commissioners and two other outsiders.

It remains to be seen whether outgoing KRA commissioner-general Michael Waweru’s opinion will impact on the board’s final choice for the top job.

Mr Waweru last month told the Business Daily that he would prefer a KRA insider to take over from him.

“I hope existing staff will contest the positions and get them. Personally I would prefer someone who has grown here to take these positions,” said the man who has been at the helm of KRA since 2003.

The list of insiders in the race to succeed Mr Waweru includes the outgoing Commissioner for Domestic Tax Department-Large Tax Payers Office (LTO) John Njiraini.

This is the second time that Mr Njiraini will be seeking to head a key state agency – having unsuccessfully vied for the position of Controller of Budget two months ago.

President Kibaki and Prime Minister Raila Odinga left out Mr Njiraini, who scored top marks during the oral interviews, in favour of the fourth placed candidate. The list of insiders in the race for the top KRA job includes the outgoing commissioner of Customs Wambui Namu, the commissioner of Support Services Helen Bila and Alice Owuor of the Domestic Tax Department.

Consumer groups supported the KRA board’s openness in the recruitment of Mr Waweru’s successor and urged the board to publish each candidate’s score at the end of the interviews.

“We commend the outgoing commissioner-general for setting very high recruitment standards but the candidates’ final scores should be made public to remove opportunities for backroom deals,” said Consumers Federation of Kenya (Cofek) secretary-general Stephen Mutoro, whose organisation has been pushing for a transparent process.

“I hope there will be fairness when balancing between the choice of insiders and outsiders”.

The successful candidate is expected to take over when Mr Waweru leaves in March next year. It is, however, expected that Mr Waweru’s exit may come as soon as his successor is named and he has inducted him or her into office.

Mr Njiraini and Ms Namu are due to leave office in April and March respectively.

The change of guard at KRA is in line with the new rules of succession formulated during Mr Waweru’s tenure.

The rules require commissioners to serve for a maximum of two three-year terms. Former Support Services head Mumo Matemu and Simeon ole Kirgotty were the first to leave office under the rules.

A KRA advertisement published yesterday indicated that a former Domestic Tax Department head Jack Ranguma is among those who applied for both the top and Mr Njiraini’s job but was not shortlisted.

Parliament is expected to take a keen interest in the position whose holder will be critical in raising the revenue needed to finance the devolved government structure in early 2013.

In making the appointment, the executive is also likely to be guided by the need for regional balancing in the key organs of national government.

Macroeconomist Mbui Wagacha said he was happy with the new transparency but advised that the selection panel stays alive to the changed public finance dispensation especially the interplay between the devolved units and the national government.

He urged the KRA board to go for expertise, hinting that a macroeconomist would be the best bet for the job.

“We should indeed embed the selection process in the Constitution or we fall victim to the newfangled thinking which says that we should balance ethnic groups,” said Dr Wagacha.

Besides the skills required for the job, integrity as spelt out under Chapter Six of the Constitution 2010 will be a key determinant of who takes the job.

Mr Waweru has managed to push for ever higher collection figures due to his thick skin for political meddling.

Appointment of the KRA commissioner-general and his deputies is solely prerogative of the agency’s board under Article 11 of the Kenya Revenue Authority Act 1995.

In the past, however, it has been left to the President to pick the office holder. The board also appoints the commissioners.

The list of candidates who have been shortlisted to replace Mr Njiraini include Josephat Omondi, David Namu Kariuki, Pancrasius Nyagah, Chris Chepkoit, Charles Tanui, Patrice Odude and Edith Kingori, a senior officer at KRA.

The shortlist for the commissioner of Customs Services was to be published this Wednesday.