Panic as KRA declines to renew contracts, launches lifestyle audit

https://www.the-star.co.ke/news/2019-12-27-panic-as-kra-declines-to-renew-contracts-launches-lifestyle-audit
[FONT=Merriweather][FONT=open sans]C[SIZE=5][COLOR=rgb(204, 0, 0)]LEAN UP[/SIZE][/FONT][/FONT]
[FONT=Merriweather][COLOR=rgb(33, 37, 41)][SIZE=4][SIZE=6][FONT=open sans][COLOR=rgb(0, 0, 0)]Panic as KRA declines to renew contracts, launches lifestyle audit[/FONT][/SIZE][/SIZE][/FONT]
[FONT=Merriweather][COLOR=rgb(33, 37, 41)][SIZE=4][SIZE=4][FONT=open sans][COLOR=rgb(0, 0, 0)]In 2014, KRA put senior staff on three-year contracts that are renewable subject to performance[/FONT][/SIZE][/SIZE][/FONT]
[FONT=Merriweather][COLOR=rgb(33, 37, 41)][SIZE=4][FONT=open sans]In Summary[/FONT][/SIZE][/FONT]
[FONT=Merriweather][COLOR=rgb(33, 37, 41)][SIZE=4][FONT=open sans]• KRA is also undertaking lifestyle audit and will be sharing the information with asset recovery authority and EACC for further action.[/FONT][/SIZE][/FONT]
[FONT=Merriweather][COLOR=rgb(33, 37, 41)][SIZE=4][FONT=open sans]• So far, five senior Managers have received their communication that KRA will not renew their contracts[/FONT][/SIZE][/FONT]
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[FONT=Merriweather][SIZE=4][COLOR=rgba(0, 0, 0, 0.5)]MONEY MEN: Acting Treasury Cabinet Secretary Ukur Yatani, KRA Commissioner General James Githii Mburu and KRA Customs & Border Control Commissioner, Kevin Safari, at the KRA offices in Nairobi on August 21, 2019
Image: FILE
Panic has gripped Times Tower after the Kenya Revenue Authority failed to renew contracts for some senior staff, the Star can report.
The process of validating the performance of all senior staff is currently in progress in the customs, domestic and corporate support services departments.
KRA is also undertaking lifestyle audits and will be sharing the information with the Assets Recovery Authority and the EACC. [/SIZE][/FONT]

“Those whose performance is not satisfactory but their contracts are not coming to an end may either have their contracts terminated as provided for in the contract or may be put on performance improvement plans of between one and six months,” a KRA source told the Star.
[FONT=Merriweather][SIZE=4]So far, five senior managers have been informed about the cancellation of contracts.
“In January the number is expected to grow when the performance validation is finalized,” one source at KRA said.
The move follows a decision by Commissioner General James Mburu to enforce performance.
Since taking over the job, Mburu has launched radical reforms to clean up KRA as well as enhance revenue collection.
The Star has learnt that some senior staff whose contracts are coming to an end are in shock as management declined to renew their contracts.
In 2014, KRA put senior staff on three-year contracts that are renewable subject to performance.[/SIZE][/FONT]

To date, no contracts have failed to be renewed even though the authority has consistently struggled to meet its targets.

KRA has partly attributed the persistent underperformance on retention of staff who have consistently failed to deliver on the revenue targets.
[FONT=Merriweather][SIZE=4]According to sources from within, KRA is exercising its options within the terms of the contract by failing to renew contracts when it considers performance as unsatisfactory.
In the last one year, KRA has recruited six new commissioners and the commissioner-general as the contracts of previous holders came to end.
“The changes in management and the enforcement of performance accountability are among measures aimed at inculcating a performance culture that will strengthen KRA’s capacity to deliver on its Mandate,” a source told the Star.
KRA has also in the recent past intensified the fight against corruption within its staff, a vice which has also been said to undermine the achievement of revenue targets.
In May, 80 KRA staff were arraigned for offences of receiving bribes and abetting tax evasion.
KRA has also intensified the fight against tax evasion having investigated and recommended prosecution of over 300 individuals in the last six months.
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