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{
    "id": 1082641,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1082641/?format=api",
    "text_counter": 54,
    "type": "speech",
    "speaker_name": "Roysambu, JP",
    "speaker_title": "Hon. Isaac Ndirangu",
    "speaker": {
        "id": 2701,
        "legal_name": "Isaac Waihenya Ndirangu",
        "slug": "isaac-waihenya-ndirangu"
    },
    "content": "Following those budgetary allocations and due to the COVID-19 pandemic, which has affected several sectors of the economy, the Committee resolved to undertake fact finding visits to KRA offices and its other satellite facilities, with the view to assess challenges affecting their ability to collect revenue optimally. Hon. Deputy Speaker, the Committee undertook fact-finding visits to the Kenya Revenue Authority at Times Tower, their container depot at Jomo Kenyatta International Airport, the Port of Mombasa, Namanga and Busia One Stop Border Posts (OSBPs). These visits were undertaken between 23rd September 2020 and 10th October last year. The objectives of the fact finding mission was to establish whether the programs that this House funded KRA to undertake were procured according to the budgetary allocation, assess the impact of reforms on revenue collection and find out whether additional revenue of Kshs191 billion was realised as had been earmarked, find out also the impact of COVID-19 on revenue collection, establish the impact of digitisation on revenue collection, and finally, establish challenges faced by KRA in the execution of their mandate. Following the visits to those offices and the OSBPs, the Committee observed as follows: Revenue collection points installed with scanners collected more revenue compared to those without but with high traffic. For instance, the Malaba one stop border post which is busier than Namanga managed to collect revenue of Kshs2 billion in the Financial Year 2019/2020 compared to Namanga which collected Kshs4 billion in the same year. The difference is that the OSBP at Namanga has been installed with scanners. Two, automation of systems has enhanced revenue collection by KRA as there is less human intervention and in any case, there is information sharing between regional offices and Times Tower Centralized Monitoring Center. Among other observations is that KRA is understaffed with at least, 4,500 permanent and pensionable staff while 1,800 under contract terms. This understaffing has resulted in revenue underperformance due to inadequate staff complement posing a challenge on service delivery. In the Malaba OSBP, we were dismayed to find out that they lack decent staff housing causing the staff to travel long distances to and from work which reduces their productivity and put them in an awkward position where they have to seek accommodation in houses owned by smugglers, thereby, compromising their integrity. The Committee also observed that there was a huge potential revenue increase in the OSBPs if they are meant to operate for 24hours as this will ease doing business if there is no limitation of working hours because tenderers are able to import and export more. The 24-hour operation will also ease congestion as the operating hours would be flexible. We observed that KRA has installed the Regional Electronic Cargo Tracking Seals (RECTS) where all containerised transit cargo and single customs territory goods from the port and excisable goods are tracked at RECTS. The installation of the cargo tracking system has greatly minimized cases of corruption and theft of goods on transit as there is less or no human intervention and thus improves efficiency due to real time information sharing. Before the RECTS programme, KRA was forced to escort trucks physically to ensure that they reach their destination and declared the goods. However, this cargo tracking devices are very few with the inland container depot having only 5,000. Lack of enough seals has created backlog at the port of Mombasa and hence the need to invest in additional RECTs. The Committee also observed that lack of harmonization of tax on commodities between Kenya and her neighbours has encouraged smuggling of goods into the country, especially alcoholic and soft drinks. For instance, the excise duty payable on alcoholic and soft drinks in The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}