The Kenya Revenue Authority commissioner general John Njiraini. PHOTO | FILE
MPs on Tuesday grilled Kenya Revenue Authority commissioner- general John Njiraini over the award of a Sh1.2 billion ($13.5 million) tender for upgrade of systems at the agency.
The Public Investment Committee (PIC) directed Mr Njiraini to table documents relating to the procurement of the Integrated Customs Management System, which is meant to replace the current Simba System as the main IT platform for filing tax returns.
Mr Njiraini said the taxpayer would not incur any cost in the systems upgrade, adding it was a grant to KRA from Trade Mark East Africa, a consortium of European financiers.
“It is 100 per cent grant. There will be no cost on the part of Kenyan taxpayers. We will not pay anything relating to cost of equipment and hardware. It is a $13.5 million deal signed by Treasury Cabinet secretary Henry Rotich. I will table these documents,” he said.
“KRA was faced with increased transactions and high demand for better trade facilitation. The new system will address challenges facing the Simba system by enhancing efficiency, safeguarding revenue collection and easing cost of doing business.”
The House committee sought to know the procurement process for the new system, following complaints raised by users who have opposed its installation.
Mr Njiraini defended the new system, saying it would have an inbuilt dynamic risk management process that would control imports and exports.
“The system will address bottlenecks KRA has been suffering using inefficient infrastructure. The system we have has slowed down and causes massive slowdown at the ports, affecting Kenyan traders and East African countries,” he said.
Mr Njiraini said KRA approached Trade Mark East Africa to help it with the acquisition of a new system to solve the problems the taxman had been facing.
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