KRA Sh2b salary hike sparks legal dispute amid structural reforms

 

KRA Commissioner General Mr Humphrey Wattanga(Right) and Deputy Director, TVET Dr. Samuel Obudho during the rollout of tax e -resources for students in Competency-Based Curriculum (CBC). (File, Standard)

Kenya Revenue Authority’s (KRA) ="https://www.standardmedia.co.ke/business/business/article/2001514649/reprieve-for-kbl-in-sh4863-million-tax-dispute-with-kra">annual salary expenditure will rise by over Sh2 billion< if its new organizational structure is implemented.

The proposed structure is currently the subject of a court case filed by the Trusted Society of Human Rights Alliance.

Court documents reveal that in August, KRA sought additional funding for staff salaries. In a letter dated August 24, 2024, to Treasury Cabinet Secretary John Mbadi, KRA noted that staff salaries were last reviewed in July 2015.

The letter, signed by Commissioner General Humphrey Wattanga, states that KRA engaged a consultant to ="https://www.standardmedia.co.ke/business/business/article/2001512725/blow-to-kra-as-court-halts-implementation-of-new-organisational-structure">assess the current organizational structure<, identifying strengths, areas for improvement, and alignment with government guidelines.

According to Wattanga, the assessment involved consultations with KRA staff at all levels and a review of global best practices, along with multiple internal and external reports focusing on critical aspects of KRA’s performance.

The review aimed to offer a competitive compensation package to attract, retain, and motivate staff. As a result, annual staff salaries and pensions would increase from ="https://www.standardmedia.co.ke/business/business/article/2001510646/kra-needs-to-collect-sh8b-daily-to-hit-sh26tr-june-target">Sh20.9 billion to Sh23.4 billion.<

He noted KRA Board approved the proposed organizational structure, critical recruitments, and salary increments, recommending them to the National Treasury for approval.

“The proposed 14-tier structure currently has a staff establishment of 9,505 employees,” the letter said.

KRA, through Dr Emmah Omwenga, Deputy Commissioner of Human Resource Management, confirmed that the new structure was implemented on February 21, 2025.