Reform in-tray full as Njiraini remains at KRA

Mr John Njiraini is expected to walk a tight rope as he steers the Kenya Revenue Authority (KRA) through a phase of delicate reforms following his retention as the Commissioner- General.

Treasury secretary Henry Rotich on Monday handed Mr Njiraini a second three-year term at the helm of the tax agency. The reappointment throws him at the centre of deep reforms that the government hopes will boost KRA’s performance and facilitate trade in the region.

The implementation of the controversial capital gains tax will be among the challenges the KRA boss will face during his second term in office.

The Treasury was last week forced to shift the burden of paying and accounting for the tax to investors at the Nairobi Securities Exchange (NSE), ending fight with stockbrokers that nearly paralysed trading at East Africa’s largest bourse.

READ: Treasury shifts the capital gains tax burden to investors

KRA now faces the administrative burden of ensuring that individual investors account for taxes for transactions made and not the market intermediaries as earlier planned.

Capital gains tax is to be paid at the rate of five per cent of the difference between the price at which the shares were acquired and the selling price less the transaction costs.

Mr Njirani is also expected to oversee the implementation of the Single Customs Territory (SCT) system, which is targeted at improving the flow of goods and curbing dumping within the East African Community (EAC).

Under the SCT members of the EAC jointly collect taxes at the port of entry.

Importers of these commodities lodge the import declaration forms in their home country and pay relevant taxes first to facilitate the export process. They are then issued a road manifest against the import documents submitted electronically.