KRA seeks Sh200m to hire consultant over tax shortfall

The Treasury has asked Parliament to approve a Sh200 million allocation to enable the Kenya Revenue Authority (KRA) to hire a consultant in yet another effort aimed at improving tax collection in the wake of missed targets.

Principal Secretary Kamau Thugge said the amount sought in a supplementary budget recently tabled in Parliament was critical to unravelling the woes facing the taxman.

“We hope that Madam Chairperson you will not deny us the budget for hiring consultants who will audit KRA revenue collection processes and help us seal any loopholes and improve revenue collection,” Dr Thugge told Deputy speaker Joyce Laboso who chairs the Liason committee of the National Assembly.

The KRA has already kicked-off the recruitment of a consultant who will help expand the taxpayer base and support revenue enhancement initiatives.

“The consultants must familiarise themselves with local conditions and take them into account in preparing their proposals,” KRA said in a call for bids by interested experts, to be lodged by April 25.

READ: KRA moves to plug tax leakage loopholes

Also read: KRA seeks consultancy to rev up revenue

“I think they were seeking about Sh200 million or so to hire a consultant. They had floated a number of firms including MacKenzie,” said Finance, Trade and Planning committee chairman Benjamin Lang’at.

Fresh data by the Treasury shows the KRA is likely to miss its full-year collection targets after realising Sh687 billion, with just four months to the end of the current budget window.