Treasury Cabinet secretary nominee John Mbadi has revealed that he will begin by initiating reforms at the Kenya Revenue Authority (KRA) to ensure efficient tax collection.

Mbadi made the remarks on Saturday August 3, 2024 when he appeared before the National Assembly Committee on appointments for vetting. 

According to Mbadi, the solution to better revenue collection is ensuring there are better systems at KRA to avoid tax leakages.

“Coming up with new taxes is not a solution. The solution to tax mobilization should be targeting the tax collector. KRA is like a cow which we milk without feeding. 

“The system that KRA is using needs re-engineering, we don’t have a system that can manage some of these tax leakages,” said Mbadi.  

In addition, Mbadi opined that the withdrawal of Finance Bill 2024 should not be a cause for alarm, noting that the government still has options in terms of revenue collection that do not involve re-introducing the entire punitive document that was widely rejected by the public.

He noted that proposals within the Finance Bill that were not contested can still be brought back to the House for legislation.

“The good provisions that were in the Finance Bill 2024, which were not contentious and can help the country grow the economy, we can bring them as specific amendments to those Acts with proper public participation. The problem we had was that the public felt they were not listened to,” he said. 

“These are specific legislations. This House, if I’m approved, should help me to bring these legislations directly, touching on these specific statues. We don’t have to have a Finance Bill, but I’ll seek guidance from the Attorney General,” he added.