Mbadi promises radical changes at KRA if approved as Treasury CS

National Treasury cabinet nominee John Mbadi has pledged to implement radical changes at the Kenya Revenue Authority to curb tax leakages and enhance collection efficiency.

The vetting committee, chaired by Speaker Moses Wetang'ula, sought to understand how Mbadi plans to increase tax revenue without imposing additional burdens on Kenyans, who have resisted further taxation, particularly on basic commodities.

Put to task by Majority Leader and Kikuyu MP Kimani Ichung'wah to explain to Kenyans how he will ensure that revenue projections from the Treasury are as realistic as possible, Mbadi, on Saturday, explained the need for an overhaul of systems at the tax collection body.

"What will you do to ensure our revenue projections are as realistic as possible because there is resistance within the KRA to put in proper working systems, especially at customs? What are the specifics you will put in place?" asked Ichung'wah.

Mbadi, a nominated MP who also headed the Public Accounts Committee in the National Assembly, agreed that the projections have not been realistic. He said that the economic department at the Treasury must be reformed.

"We must reform our economic projections so that they become realistic," said Mbadi.

On KRA, the former Suba South lawmaker stressed the importance of coming up with a system that can prevent tax leakages.

"KRA systems need re-engineering. I am going to target KRA because it is like a cow we milk without feeding," said Mbadi.

Treasury CS nominee John Mbadi arrives in Parliament where he appeared before the National Assembly’s Committee on Appointments on Saturday, August 3, 2024. (Photo: National Assembly)

Mbadi promised to have meetings with officials of KRA to ensure that systems at the tax collector are automated to prevent leakages.

"We should provide a proper evaluation of KRA. My first meeting will be about how to reform KRA because, without them, we will not achieve much," pledged Mbadi.

Mbadi further highlighted his extensive experience with financial matters as a key qualification for the position.

He said that for the last 15 years, he has been in parliament, he has always been a member of the budget and appropriations committee, which has the responsibility and mandate to prepare the country's budget.

"I was an assistant minister in the office of the Prime Minister and my responsibility was to supervise and coordinate government functions in all ministries, which is very much in line with the Treasury," he added. 

"During this time, I interacted a lot with the Kenyan budget and the macro-economic policies. I can attest that I have interacted with the budget review outlook paper, which is prepared every year. I am comfortable with how to generate budget policy statements," he stated.

Mbadi currently serves as the chair of the powerful Public Accounts Committee, which is responsible for holding ministries, departments, and agencies. He has 28 years of experience in the fields of finance, leadership, and politics.

He finds himself in a catch-22 situation as the country waits to see how he will balance the Kenya Kwanza manifesto and his stance against outrageous taxation policies.