STAFF NEWS T he dancers kept the guests, who included Finance Assistant Minister Peter Kenneth and his Transport counterpart Cecile Mbarire, Finance Permanent Secretary Joseph Kinyua, KRA Board Members, Commissioners and a host of other stakeholders from the Motor industry, glued to their seats despite the unexpected light mid-day showers. The official launch of this year’s Taxpayers’ Week was a culmination of several weeks of behind-the-scenes preparations by the nineteen- member strong Organising Committee under the stewardship of Commissioner of Support Services, Mumo Matemu. Many were the times when the committee members had to forego their weekends to give the occasion the much- needed finesse. Another important anecdote of the official launch was the unveiling of the new generation security printed Log Book. The unveiling of the Log Book was met with jubilation from the enthusiastic stakeholders and other customers who expressed satisfaction at the direction the Authority was moving. The theme for this year’s Taxpayers’ Week was Kulipa Ushuru ni Kujitegemea, or Embracing the Challenge of Financial Independence. This theme is a clarion call to all Kenyans to pay all their taxes and reduce the country’s dependence on official development assistance, thereby enhancing financial independence and national sovereignty and pride. Kenya Revenue Authority’s Reform and Modernization Programme has now matured as can be attested to by the numerous initiatives that have so far been rolled out across the departments. The overriding objective of this year’s Taxpayers’ Week was therefore, to showcase these reforms, and their impact on revenue administration. In this regard, a series of tax clinics were organised throughout the KRA regions countrywide. Among the activities carried out at the tax Taxpayers’ Week Marked with Pomp & Dance KRA’s in-house staff quarterly newsletter Issue No. 27 Cargo Movement to Kampala 7 HR Unveils New Staff Medical Benefit 17 Customs Officers Attend Anti-Terrorism Training 20 KRA HOSTS LECTURERS Assistant Minister for Finance Hon. Peter Kenneth cutting the tape to officially launch the Taxpayer’s Week at Times Tower. Looking on is the Assistant Minister Ministry of Transport Hon. Cecile Mbarire (centre), Mr. Leonard Mwangola Chairman Board of Directors - KRA and the Commissioner KRA – Mr. M G. Waweru. Monday, 16 th October 2006 was a day like no other ever witnessed in the three-year history of KRA’s Taxpayers’ Weeks. The turning point in this year’s official launch was the inclusion of the Bomas of Kenya traditional dancers as a curtain raiser for the occasion. CONTINUED ON PAGE 4 10 Njiraini’s Message to LTO Staff 14 IN THIS ISSUE
Transcript
S T A F F N E W S
The dancers kept the
guests, who included
Finance Assistant
Minister Peter Kenneth and
his Transport counterpart
Cecile Mbarire, Finance
Permanent Secretary Joseph
Kinyua, KRA Board Members,
Commissioners and a host of
other stakeholders from the
Motor industry, glued to their
seats despite the unexpected
light mid-day showers.
The official launch of this
year’s Taxpayers’ Week was
a culmination of several
weeks of behind-the-scenes
preparations by the nineteen-
member strong Organising
Commit tee under the
stewardship of Commissioner
of Support Services, Mumo
Matemu. Many were the times
when the committee members
had to forego their weekends
to give the occasion the much-
needed finesse.
Another important anecdote
of the official launch was the
unveiling of the new generation
security printed Log Book. The
unveiling of the Log Book
was met with jubilation from
the enthusiastic stakeholders
and other customers who
expressed satisfaction at the
direction the Authority was
moving.
The theme for this year’s
Taxpayers’ Week was Kulipa
Ushuru ni Kujitegemea, or
Embracing the Challenge of
Financial Independence. This
theme is a clarion call to all
Kenyans to pay all their taxes
and reduce the country’s
dependence on official
development assistance,
thereby enhancing financial
independence and national
sovereignty and pride.
Kenya Revenue Authority’s
Reform and Modernization
Programme has now matured
as can be attested to by the
numerous initiatives that
have so far been rolled out
across the departments. The
overriding objective of this
year’s Taxpayers’ Week was
therefore, to showcase these
reforms, and their impact on
revenue administration.
In this regard, a series of
tax clinics were organised
throughout the KRA regions
countrywide. Among the
activities carried out at the tax
Taxpayers’ Week Marked with Pomp & Dance
K R A ’ s i n - h o u s e s t a f f q u a r t e r l y n e w s l e t t e r Issue No. 27
Cargo Movement to Kampala
7HR Unveils New Staff Medical Benefit
17Customs Officers Attend Anti-Terrorism Training
20KRA HOSTS LeCTUReRS
Assistant Minister for Finance Hon. Peter Kenneth cutting the tape to officially launch the Taxpayer’s Week at Times Tower. Looking on is the Assistant Minister Ministry of Transport Hon. Cecile Mbarire (centre), Mr. Leonard
Mwangola Chairman Board of Directors - KRA and the Commissioner KRA – Mr. M G. Waweru.
Monday, 16th October 2006 was a day like no other ever witnessed in the three-year
history of KRA’s Taxpayers’ Weeks. The turning point in this year’s official launch was the
inclusion of the Bomas of Kenya traditional dancers as a curtain raiser for the occasion.
Table 1: (July to September) 2006 Revenue Performance (Kshs million)
The revenue performance for
the 1st quarter is summarized
in table 1 below. The total
target for the quarter was Kshs.
84.5 billion of which domestic
Taxes department (dTd) was to
collect Kshs. 47.5 billion or 56.2%,
Customs Services department
(CSd) was to collect Kshs. 36.5
billion or 43.1 % and the Road
Transport department was to collect
the remaining 0.6%. Compared to
the actual achievement of the 1st
quarter in 2005/06, revenues were
expected to grow by 21.3%.
As shown in table 1 below, overall
revenue performance totaled Kshs.
82.9 billion or a performance rate
of 98.1 %. Overall, revenues grew
by 19%. All revenue departments
registered significant growth in
revenue collection compared to
the same quarter in 2005/06. The
highest growth rate was registered
by Customs Services department
(CSd) at 32.5% followed by
domestic Taxes department (dTd)
at 11.3% and Road Transport
department (RTd) at 16.6% (this
growth excludes the collection of
Road Licenses which was removed
in the 2006/07 budget speech with
a compensating increase in the
Road Maintenance Levy).
Customs Services Department
CSd collected Kshs. 35.6 billion or 97.7% of its 1st quarter
target. The department has overcome the teething problems
associated with the introduction of the Simba system and this
is evident from the improved growth registering a cumulative
growth rate of 32.5% for the quarter, with the highest growth
rate being registered in July at 66.1 %. The strongest
performer was dry goods (non oil products) which had been
the weakest performer in 2005/06. The annual target for
CSd for 2006/07 FY is Kshs 140.4 billion, implying it needs
to collect an additional Kshs.104.8 billion in the remaining 3
quarters of the year, or Kshs. 569 million per working day.
Analysis of 1st quarter data shows that CSd has been able
to increase its daily collections from Kshs. 523 million in
July to Kshs. 554 million in August and Kshs. 566 million in
September. Thus, the upward trend implies that the CSd is
on track to meet its annual target.
Domestic Taxes Department
dTd collected Kshs. 46.8
billion in the 1 st quarter,
a performance rate of
98 .5%. dTd’s annua l
ta rge t i s Kshs . 213 .5
billion. For the 1 st quarter,
the performance rate for
the department has been
on an upward trend from
month to month, rising
from 97.3% in July, to
99.0% in August and 99.1
% for September 2006.
With this trend the dTd is
on its way to meeting the
annual target.
Road Transport
Department
The performance
of RTd has been
impressive despite
t h e r e m o v a l o f
the Road License
transferred to RML.
growth in revenues
(exc lud ing road
l i c e n s e s ) h a s
i n c r e a s e d f r o m
5.6% in July 2006 to
14.8% in September
2006. Cumulatively
for the quarter the
growth rate was
16.6%.
F R O M T H E C G ’ S D E S K
Revenue Performance
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Admin is t ra t i ve Measures The improvement in revenue performance was achieved both as a result of the
economic environment as well as the administrative measures put in place by
the Authority. The main administrative measures included the following:
Domestic Taxes Department
Electronic Tax Register
(ETR): Fol lowing the
amendments to the ETR
provisions in the 2006/07
Budget Speech, compliance
checks have been stepped
up with audits now including
compliance with the ETR
requirements,
Taxpayer Audits: Audits
are now being assessed on
the basis of case coverage
as opposed to revenue
yield and a framework for
implementation of external
follow up teams to check on
quality of audits has been put
in place,
Excise Stamps on wines
and spirits: The modalities
on regulations and transition
rules for implementation of
the excise stamps have been
developed for roll out in the
second quarter,
Debt management: The
department has set clear
benchmarks for debt
collections while a debt
resolution strategy is being
developed. Procedures for
rapidly moving from debt
identification through audits to
collection through compliance
officers have been developed
and rolled out.
Customs Services Department
Document Processing
Centre (dPC): The dPC
which replaced the manual
long rooms in 2005/06 was
converted to a 24 hour 7
day operation to ensure
importers have full time
service availability,
Monitoring of Oil: new
measures were introduced to
monitor transit oil including the
requirement that marketers
produce weekly reconciliation
reports as well as the
monitoring of bio coded trucks
on a weekly basis,
Monitoring of transit trucks:
new measures have been
introduced to monitor transit
trucks along the transit
routes
Simba System: The stock
module has been deployed
in the Simba 2005 Computer
System which is expected to
assist in stock management
of the various bonded
warehouses that are located
countrywide. In addition,
the LEUK module has
been deployed, allowing
users to view the Customs
Management Act (CMA) the
Common External Tariff (CET)
and the Customs and Excise
Act (Cap 472) online.
Road Transport Department
The Vehicle Management System and the
SIMBA system have been linked allowing
for all information on imported vehicles to
be accessed by the RTd online. This has
led to the elimination of the Certificate of
Clearance (COC) previously required for
registration of vehicles.
Conclusion
KRA has begun implementation of
the Third Corporate Plan 2006/07
2008/09 which was officially launched
by the Hon. Minister for Finance on
25th August 2006. The Authority
will continue to implement the
initiatives under the modernization
process through the Revenue
Administration Reform and
Modernization Programme and
exploit the gains of the reforms
implemented so far.
during the 2nd quarter, October
to december 2006, KRA is
expected to collect Kshs.
85.9 billion. The Authority
is committed to meeting
this target and making
good the shortfalls of
the 1 st quarter. I am
confident that with
your continued
support, we shall
not only meet the
set target but
surpass it.
M. G. Waweru
F R O M T H E C G ’ S D E S K
F i r s t Q u a r t e r
Kenya Revenue Authority on 16th
October launched the taxpayers’
week at a ceremony held outside
Times Tower. More pictures in
the centre pages.
�
Top Managers of Kenya Revenue Authority signed Performance Contracts on Saturday,
24th June 2006, with the Commissioner General. The Ceremony involved Commissioners,
Heads of Departments and Heads of Regions.
S T A F F N E W S
Top Managers Sign Performance Contracts
The Signing of the
annual Performance
Contracts for the
Financial Year 2006/2007
signified Top Management’s
p e r s o n a l c o m m i t m e n t
t o m e e t K R A ’ s o v e r a l l
performance objectives for
the period. The Contracts
were de r i ved f rom the
departmental and Regional
Bus iness P lans , wh ich
were prepared to support
KRA’s Third Corporate Plan
(2006/07 2008/09).
One significant shift in the
new Performance Contracts
is the people’s perspective
which is the first parameter,
f o l l o w e d b y I n t e r n a l
processes, the customer
perspective, and finally the
financial perspective. The
Per formance Contracts
c l e a r l y d e f i n e e a c h
depar tment ’s /Reg ion ’s
role in achieving KRA’s
overall objective for the
FY 2006/2007, with each
giving more weight to their
respect ive contr ibut ion
area. The approach clarifies
the focus areas and makes
i t eas ie r fo r personne l
t o unde rs tand wha t i s
expected of them within the
departments or Regions.
Speaking at the end of
the signing session, the
Commissioner general ,
Mr Mg. Waweru thanked
Top Management for their
commitment and enthusiasm
in having the documents
ready in good time. “of great
importance is the need for
us to use all the tools at
our disposal to achieve our
targets. We know where
the revenue is, so let us
get to work, We should
start the new Financial Year
with vigour. We expect to
collect about Ksh 300 billion
shillings before the end of
this financial year, then we
can begin dreaming of 500
billion shillings in the years
to come. Only then we can
say we made Kenya truly
independent,” he said.
Commissioners, Heads of
departments and Heads
of Regions are expected to
cascade the performance
contracting process by signing
similar contracts with their
middle level managers.
Mr. M G. WaweruCommissioner General
clinics are on-line generation of PIn,
on-line VAT registration, demonstration
of Simba 2005 System, demonstration
of Electronic Tax Registers (ETR) as
well as renewal of driver’s license.
In l ine with the KRA’s social
responsiveness, the Authority
organized well-attended Medical
Camps throughout the regions
countrywide. The Medical Camps were
organized in selected areas to help
minimise distress among vulnerable
communities. The Medical Camps,
which were co-sponsored by Ministry
of Health, attracted large numbers of
women, children and the elderly.
In addition, tax lectures were delivered
at selected public and private
Universities countrywide throughout
the Taxpayers’ Week. The lectures
were aimed at acclimatizing the
university communities on the various
strategic initiatives that the Authority is
undertaking in a bid to enhance service
delivery to its customers and other
stakeholders.
This year’s Taxpayers’ luncheon that
was initially scheduled for Saturday
21st October 2006 at the Kenyatta
International Centre (KICC), nairobi,
was postponed to 10th november
2006 at the same venue. As has been
the tradition, the occasion is meant
to recognise and reward compliant
taxpayers and facilitators who have
stood by the Authority in its onerous
but noble mandate of revenue
collection.
Taxpayers’ Week Marked with Pomp and DanceCOnTInUEd FROM PAgE 1
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S T A F F N E W S
Mr. Andrew Okello previously
Commissioner for domestic Taxes has
been appointed to the International
Monetary Fund as the Regional
Advisor with effect from 1st January
2007.
Mr. Okello, will be under the East
Africa Regional Technical Assistance
Centre to oversee operations in
Kenya, Uganda, Tanzania, Rwanda,
Malawi, Ethiopia and Eritrea.
Congratulating him on the new
appointment the Commissioner
general Mr. M g. Waweru said the
Authority welcomes his appointment
as it is a positive career move for
him as well as a recognition of the
expertise and capacity available
within the Authority. He also thanked
Mr. Okello for his dedicated five years
with the Authority and wished him well
in his future endeavours.
Mr. Okello joined KRA in 2001 as head
of the Research & Corporate Planning
department from the Ministry of
Finance where he had served as
Assistant director within the Fiscal
& Monetary Affairs department.
While at the Ministry, Mr. Okello was
responsible for Trade and Tax policy
issues.
In KRA, Mr. Okello was among
the key figures in designing
reform programmes among other
administrative measures that have
propelled KRA to its current high profile
organisation with unprecedented
revenue yields.
Mr. Okello holds a Bachelor of Arts
(Economics) Honours degree from
the University of nairobi, a Master of
Arts (development Economics) from
Williams College, Massachusetts
(USA) and a Master of Business
Administration from Bath University
(UK).
Mr. Andrew Okello
Commiss ioner Oke l lo jo ins IMF
The new medical scheme
has finally come into effect.
Contract agreements for the
following hospitals have now been
executed and registered.
1. nairobi Hospital
2. nairobi Equator Hospital
3. gertrudes garden Children
Hospitals
4. Siloam Hospital
5. Mombasa Hospital
6. Consolate Hospital nyeri
7. Social Services League, M.P
Shah Hospital
8. nairobi West Hospital
9. Metropolitan Hospital
10. Central Memorial Hospital-Thika
11. Jocham Hospital-Mombasa
12. Evans Sunrise Medical Centre-
nakuru
13. Valley Hospital- nakuru
Staff and their eligible dependants
can therefore access both outpatient
and inpatient services in these
hospitals without having to pay
first on condition that they properly
identify themselves.
Staff will be required to use the Staff
Identification Card and the eligible
dependants wil l use the photo
identification cards.
For ease of ident i f icat ion the
hospitals have been given the
database of details of the staff and
their eligible dependants as well as
their coloured photos. The Senior
deputy Commiss ioner-Human
Resources Mr M.A Onyura has asked
staff who forwarded their medical
benefits forms to collect the photo
identification cards for their eligible
dependants from the nearest Human
Resources Office.
Abuse of the medical
scheme will constitute
gross misconduct as
stipulated in the KRA
Code of Conduct.
HR Unveils New Staff Medical Benefit
M. A. Onyura, Snr. Dep. Commissioner - HR
Uganda Revenue Authority on 18th August 2006 honoured its taxpayers in
a pompous poolside ceremony that attracted dignitaries from the region, ambassadors and high commissioners, among others. The guest of honour, Ugandan Prime Minister Professor Apolo nsibambi commended URA for rapid revenue growth and the positive public image the Authority has acquired with time.
The Prime Minister added that the government was happy that it was able to financing 58% of its recurrent expenditure through URA and urged the Authority to focus on delivering quality service to encourage taxpayers to be more compliant.
‘’More government
revenue in government
coffers implies more
government expenditure
on projects, which in turn
means more money in
people’s pockets and
by implication more
investment, more growth
and prosperity.’
Mrs Alellen Kagina, URA’s
Commissioner general lauded
the Authority’s development
partners among them, dFId,
IMF, world Bank, danida,
Belgium, China, among others,
for supporting the Authority’s
modernisation programme.
She also said that it is only
through taxes that Uganda
could free itself from the inherent
donor dependency and urged
all to pay their taxes.
KRA was represented at the
ceremony by among others,
director Mildred Owuor, who
was the head of delegation,
Commissioner of Motor Vehicles
Mr. Simeon ole Kirgotty, Ms
Karen nginda, Senior Assistant
Commissioner- Research and
Corporate Planning department
and Mrs. Maureen njongo,
Ag. deputy Commissioner-
Corporate & Public Affairs
division.
The celebrations were held at
the newly opened luxurious and
tastefully furnished Kampala
Serena Hotel on 18th August
2006. The distinguished
taxpayers received trophies in
the back drop of a man made
water fall and pulsating music
from a local group in a serene
atmosphere complimented by
lush green surroundings.
URA’s corporate colours of
bright yellow and blue blended
with the candle light on each
table to bring out the vibrancy of
the occasion which culminated
in fireworks that lit up the sky
in a profusion of colours to
also mark URA’s 15th year of
existence.
�
Director Mildred Owuor headed KRA’s delegation to Uganda Revenue Authority Taxpayers’ Day.
Kenya Revenue Authority has, in the past
three years, taken deliberate steps to
rationalise its operations, and enhance
quality of its service delivery as a way of re-aligning
the Authority’s activities to the dynamics of the
business environment.
The far-reaching business process re-focussing,
carried out under the banner of Reform and
Modernization Programme (RMP), has targeted
all aspects of operations including improvement
in business processes as well as revitalization
of human resources. These efforts are aimed at
creating and sustaining formidable partnerships
with the Authority’s diverse stakeholders.
One of the ways to achieve desired sustainable
partnerships is by constantly involving stakeholders
in various developments taking place within the
Authority, including legislative and policy changes,
as well as administrative measures instituted for
effective implementation of those changes. This
way, the stakeholders are able to fully identify with,
and support the Authority’s efforts, and ultimately
enhance the level of voluntary tax compliance.
It is in this regard that the KRA Board of directors
deemed it necessary to create the Taxpayer
Services division (TPS) during the last half of the
2005/06 Financial Year.
From the mission statement, one can easily discern
the need for co-ordination and standardization of all
the information, education and services provided to
the Authority’s stakeholders across board.
The mission statement of the TPS
Division is to “assure quality, courteous
and equitable services to taxpayers by
providing comprehensive and standardized
taxpayer education, information and
services that promote partnership and
voluntary compliance.”
I N D U S T R Y N E W S
URA Honours TaxpayersTaxpayers Services
Division
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The TPS division is domiciled in the
office of Commissioner of Support
Services, and aims at ensuring that
all customer needs are addressed
professionally and comprehensively
in real time, in an environment of
mutual trust and understanding. To
achieve this, the division develops
customer-driven programmes, and co-
ordinates, monitors and evaluates their
implementation by respective revenue
departments.
There is therefore, a symbiotic relation-
ship between TPS division in Head
Office and taxpayer services providers in
the respective revenue departments.
Experience of revenue authorities
across the globe has shown that newly
registered taxpayers easily fall back to
non-compliance if there is no proper
follow-up and care. The principal
reason that has been put forward
to explain this unfortunate state-of
–affairs is the prohibitive penalty regime
used to punish taxpayers who do not
adhere to due dates for submission
of tax returns and payment of taxes. It
has been argued that if the penalties
are too stiff, the taxpayers might opt
to go underground for fear of losing
a big chunk of their profits to the tax
collector.
More often than not, non-compliance
occurs due to lack of sufficient tax
education and sensitization. In this
regard, the TPS division develops
annual themes to drive taxpayer
education activities.
The theme for the 2006/07
Financial Year is “Benefits
of Compliance.”
The division has already developed
an Action Plan for the current financial
year to be implemented by the revenue
departments. The Action Plan details the
envisioned activities, implementation
strategies and budgetary requirements,
and provides a time frame for their
accomplishment both in the short term
as well as medium/long term.
The short term programmes include
Media Campaigns, Tax Education for
academic and examination institutions,
Taxpayer Outreach, Brochures/Booklets,
Fliers and give-aways, monthly tax
seminars, KRA Website and annual
Taxpayers Week.
The medium/long term programmes
include sector-based initiatives targeting
shopping malls, banks and other ports
of entry and confluence, KRA waiting
rooms and business centres. Other
medium/long term programmes include
outside broadcasts/advocacy, Central
Information Bureau, Staff information,
border points and ASK shows.
The Taxpayer Services division, as
currently constituted, has only two
officers, namely, Ezekiel Maru (dC)
and Vincent Ongore (Ag. AC), assisted
by Bernadette Murunga, the division’s
secretary. It is however, envisaged
that this division will soon expand to
bring on board diverse talents and
skills to help move forward the various
programmes to be initiated, or those
that are already on-going.
In conclusion, it is important for the
Authority to remain focused on the
important role that it is playing in
the development process of this
great nation, and to prepare to
embrace opportunities and surmount
challenges as they emerge, always
putting the customer at the centre of
all its programmes and activities. One
anonymous management thinker had
an occasion to advice on customer
care, thus:
“It is the customers who
give business the charter to
exist; we must therefore,
strive to develop all our
programmes and activities
around customer needs.
Short of this realization,
we soon become irrelevant
in the modern business
environment.”
The TPS Team wishes to implore the
KRA fraternity to treat our stakeholders
with the dignity they deserve.
Mr. Ezekiel Maru, Deputy Commissioner Taxpayer Services
T A x p A Y E R S S E R v I C E S D I v I S I O N
Mr. Vincent O. Ongore, Ag. Assistant
Commissioner - Taxpayer Services
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T R A I N I N G N E W S
Among the topics discussed were;
a) Role of PU-Technical Division:
• As a centre of knowledge the
division plays a crucial role in
improving staff technical skills
and competencies. By providing
necessary guidance and advice
on Tax Policy matters. It does this
through such in-house trainings
and faci l i ta t ing exposure to
international workshops
and trainings.
• The division is charged
with the responsibility
of providing fast and
efficient quality service
to i ts customers by
e n s u r i n g f a s t e r
response to technical
enquiries and upholding
internal standards. The
main customers are
the Commissioners of
domestic Taxes - LTO
and dR
• The division ensures
enforcement of tax laws
through simplification
a n d i n t e g r a t i o n o f
modern administrative processes
including implementation of ISO
strategies.
The div is ion is responsib le for
the development of policies and
guidelines to enable functional units
collect revenue more effectively and
efficiently. A PU-Technical Operational
Manual is now in place.
Accordingly, officers were sensitized on
the need to embrace and be guided by
the objectives of the division as outlined
by their performance contracts, upon
which they will be appraised based on
the four perspectives, namely: People,
customer, internal processes and
finance.
b) Overview of Direct and Indirect Taxes
Income Tax is a direct Tax administered
by domestic Taxes department while
the other taxes are classified under/as
Indirect Taxes.
Both Income Tax and VAT Acts cover
broadly: interpretations of certain
words or-phrases as used for Tax
purposes, income chargeable to
tax, ascertainment of chargeable
income, tax rates, persons assessable,
objections and dispute resolutions, tax
collection methods, tax exemptions,
tax offences and relief among others.
c) International Taxation
This addresses a relief in cases of
double taxation. double Taxation
Agreements/Treat ies have been
signed between Kenya and other
countries for this purpose. Kenya has
so far signed such agreements with
India, denmark, germany, norway,
Sweden, UK, Zambia and Canada.
d) ISO Compliance
The training sensitised officers on the
ISO requirements which emphasises on
proper documentation, management
support, resource provision, delivery of
services processes and measurement
Policy Unit-Technical In-house Training
Participants to the KRA Policy Unit Technical Training.
The Domestic Taxes, Policy Unit (DTD-PUT) held
an in-house training in October 2006. The seminar
aimed at improving the Division’s operations by
having a uniform approach to issues.
T R A I N I N G N E W S
Senior deputy Commissioner, Human
Resources department Mr. Michael
Onyura on 18th September 2006
presided over the opening ceremony for
the Customs Module graduate Trainees
group III Year 2006/2007 at the Kenya
Revenue Authority Training Institute
(KRATI). He welcomed trainees to the
Institute urged and urged them to work
hard an d a uphold high level of self-
discipline. He said that the Authority
had invested in training since it values
Human Resources as the greatest
asset.
In attendance was Senior deputy
Commissioner, Southern Region Mr.
Kuria Wagachira among others.
Graduate Trainees group III Customs Module at KRA Training Institute Mombasa.
G r a d u a t e Tr a i n e e s
of these processes. KRA is looking
forward to being ISO certified by
June 2007.
T h e P o l i c y U n i t s - T e c h n i c a l
operational manual now in place is,
tailored on the ISO requirements.
e) Budget Process
This is a continuous process and
the officers were sensitised on
the need to constantly identify tax
issues that require introduction into
or amending the relevant Tax Acts
with a view to enhancing revenue
collection.
Such issues should be submitted
to the division for deliberation
before finally forwarding them to
Treasury for appropriate action.
Content ious issues may also
prompt issuance of technical
circulars for clar i f icat ion and
guidance from Plead Office. This
is for the good of all operational
functional units in the department.
f) Dispute Resolutions
There should be faster dispute
resolut ions in the stat ions as
disputes tend to hold back revenue
col lect ion. The of f icers were
encouraged to submit contentious
matters that require technical
guidance to Head Office rather than
keep them pending thus impacting
negatively on revenue collection.
g) Integrity Issues
Officers were sensitised on the
need to carry out risk assessments
on the i r bus iness processes
with a view to coming up with
internal prevention management
measures. It was confirmed that
integrity testing program is already
in place.
Two officers from Customs Services
department Mr. Lawrence Siele
and Ms. nelly Okwach attended
a six week training on preventing,
interdicting and investigating acts of
terrorism sponsored by the Office of
Anti – Terrorism Assistance, United
States department of State through
the US Embassy, Kenya.
The course was held at the Kenya
School of Monetary Studies from
28th August
- 6th October
2 0 0 6 . T h e
theme of the
course was “Evil
will thrive when
good people do
nothing.” It was
facilitated by
trainers drawn
from retired and
current serving
Federal Bureau
of Investigation
(FBI) agents.
Customs Officers Attend Anti-Terrorism Training
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Mr. Lawrence Siele (left) and Ms. Nelly Okwach (right) with Mr. Kevin L. Safari, the Ag. Deputy Commissioner - CSD Enforcement (centre).
Th e C o m m i s s i o n e r
for Domestic Taxes
– La rge Taxpayers
Office Mr. John Njiraini has
said the professionalism
is the most distinguishing
feature in the success of
modern organizations. He
underscored the primacy
given to professionalism in
KRA’s vision, which he said
rightfully places this attribute
at the forefront of its corporate
values.
Mr. njiraini was speaking during a two
– day management skills development
workshop on 7th & 8th September
2006 at the Safari Park Hotel. The
workshop was organized by the
Human Resources department to
build capacity within the department.
This is in recognition that failure in
the management role inevitably leads
to loss of focus and the eventual
collapse of an organization’s ability to
achieve its mission.
Part ic ipants learnt more about
KRA’s new eva lua t ion sys tem
which emphasizes on providing
tangible incentives to encourage
positive performance and resolved
to uphold the LTO’s vision “to be
the Centre of Excellence in
tax administration applying
strategies consistent with the
KRA’s vision”. The department
committed itself to pursue the on going
reform and modernization programme
and implementation of June 2006/07
budget measures whose initiatives
include the following:
1. Implementation of an Integrated
Tax Management System (ITMS)
2. Implementation of Turnover Tax.
3. Implementation of Capital gains
Tax/Take over of Land Rent
4. Implementation of Advance Tax
on drivers and conductors of
Public Service Vehicles.
5. Establishment of Tax dispute
Resolution Body
6. Review and finalization of draft
Excise Bil l and introduction
of excise stamps on wines &
spirits.
7. Enforcement of Electronic Tax
Register System.
8. Review and finalization of draft
Tax Procedure Code.
9. development and implementation
of ISO 9001:2000 procedures
manual/work instructions.
10. L T O C a p a c i t y B u i l d i n g
development
11. development and Implementation
of Records Management System
Participants to a two-day Management Skills Workshop.
10
S T A F F N E W S
KRA now Member
of Prestigious World Body
Kenya Revenue Authority has
been admitted as an associate
member of the prestigious
Inter-American Centre for Tax
Administration (CIAT). The
recognition is as a result of the
Authority’s sterling performance
in the implementation of tax
administrative measures. Other
members of CIAT are Czech
Republic and South Africa.
This international recognition
and accolades are indicators
that the Authority is meeting
international best practices
and more importantly crossing
milestones towards KRA’s
vision.
Njiraini’s Message to LTO Staff
Mr. John Njiraini, CDT-LTO
Mr. Kevin Safari F o r m e r l y S e n i o r A s s i s t a n t
Commissioner – Operations has
been t ransferred to Customs
Services department and appointed
Act ing deputy Commissioner
– Enforcement.
11
The Board Secretary Mrs. Wairimu
ng’ang’a presented certificates to
the first group of forty (40) KRA
employees trained by St. John
Ambulance. In a ceremony held
at Times Tower on 8th September
2006, Mrs. ng’ang’a reminded
the awardees that they had been
equipped with skills which would
enable them save lives before
expert intervention.
The 40 employees were
selected from all floors of Times
Towers, Forodha and JKIA. The
programme will be rolled out
to KRA regions with the aim of
having one employee trained in
first aid for every ten employees
and also have one First Aid Kit for
every fifty employees.
Board Secretary Mrs. Wairimu Ng’ang’a presenting a Certificate to Magdalene Karimi. Looking on is Horace Tures, Clinical Officer
First Aid: BS Awards
Certificates
S T A F F N E W S
A p p o i n t m e n t s
David Kiprop Sirikwa YegoMr. david Kiprop Sirikwa Yego has
been re-assigned to the position
of Senior Assistant Commissioner
(SAC), Operations and will also be
responsible for Audit follow –up in
the Commissioner general’s Office.
Mr Thomas Bifwoli Mr Thomas Bifwoli a KRA employee
attached to the Mombasa Anti-
Smuggling Team (MAST) was one
of four experts appointed by the
United nations Secretary-general,
Mr Kofi A. Annan, to be at the front
in addressing the issues arising in
darfur-Sudan. Mr Bifwoli joined the
Authority as a graduate Trainee and
previously worked in the Regional
Intelligence Liaison Office (RILO)
and has vast training in intelligence,
investigation and prosecution.
EmergencySecur i ty & Medica l Extensions available for 24 hours at Times Tower; 2064, 7174, 4072, 6160, 2137, 3152.
Plan to hold a night at the same time every week.
Entertain no TV, home-work, or phone calls on a family night.
Friends shouldn’t be in-cluded if it distracts from family togetherness.
Don’t use family night to discipline or discuss family problems. Call a
family council at some other time to work out such problems.
Always have refresh-ments. This keeps the children looking forward to the special night each week.
Involve every family member. Each can take turns planning activities, refreshments, outings,
Helpful Hints to Healthy Livinggiving a lesson, or teach-ing a new skill to the others.
Adapt your family night to your own family situa-tions and needs.
Teach your children what is important to you and what you value in your life. You are the most important teacher your children will ever have.
N E W S p I C T O R I A L
3
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1
1. guests of Honour Peter Kenneth (second right) and Cecile Mbarire (second left) Assistant Ministers Ministry of Finance and Transport respectively arriving at the launch escorted by Chairman Board of directors Mr. Leonard Mwangola (far right).
2. Members of the Board of directors and chief guests sing the Integrity Anthem at the launch ceremony.
Taxpayers’ Launch marked
2
3 Hon. Peter Kenneth sharing a light moment with Mr. M g. Waweru during the launch of the taxpayers’ week.
4. Members of staff and invited guests follow proceedings keenly.
5. Bomas of Kenya traditional dancers thrill invited guests with their best.
4
N E W S p I C T O R I A L
7
6
1�
8
5
9
10
6. KRA director Mr. nathaniel Kangethe gives medicine to a baby during the free medical camp organized by KRA at Kayole.
7. Hon. Peter Kenneth fixes a gK number plate during the launch of the new look logbook outside Times Tower.
8. Master of ceremony during the launch Mr. Kennedy Onyonyi who is also Ag. SdC – RTd, addressing the gathering.
with Pomp and Dance
9. Commissioner of Motor Vehicles Mr. Simeon Ole Kirgotty explaining the features of the new look electronically generated log book.
10. Hon. Peter Kenneth accompanied by the Commissioner of Support Services Mr. Mumo Matemu (right) hands over the new electronically generated logbook to a taxpayer.
The most important step to
avoiding an attack is to stay
alert at all times and be aware
of your surroundings. Talking
on your mobile phone when
driving also distracts you
from your environment thus
allowing you to become an
easy target.
Learn to avoid these areas
and situations if possible. If
not, take steps to prevent
an attack. In traffic, look
around for possible avenues
of escape. Know where all
the safe havens are on your
route. Keep some distance
between you and the vehicle
in front, if at all possible, so
you can maneuver easily
if necessary. You should
always be able to see the
rear tires of the vehicle in
front of you.
If you think you are being
followed, don’t go home. go
to the nearest police station,
parked security vehicle, or
other safe haven and report
it. don’t be afraid to be wrong
or look foolish. It’s better to
be safe than sorry. When
stopped, use your rear and
side view mirrors to stay
aware of your surroundings.
Also keep your doors locked
and windows up.(From the Internet)
Kenya and Uganda are working
on ways to improve cargo
transport between Mombasa
port and Kampala.
Uganda has expressed concern that
cost of moving goods from the port
to its capital was high, making the
business expensive. Transport ministers
Mr Ali Mwakwere and his counterpart Mr
John nasasira drove on the 1,000 -km
long stretch to assess any bottlenecks
transporters face. A statement by the
Kenya Ports Authority said the ministers’
move was a culmination of “a series of
meetings” in Kampala.
Mwakwere led the delegation from
the KPA while nasasira was with the
Ugandan team. The Kenyan delegation
b r i e f ed t he Kampa la bus iness
community and port users of the new
developments at the port of Mombasa
that include the installation of new cargo
handling equipment.
Traders have many times complained
that cargo was not flowing smoothly,
citing many police checks. Last year,
the World Bank conducted a study
that found there are 27 police barriers
between Mombasa and Busia.
According to the study, the barriers
were not business friendly, delaying
cargo movement to Kampala and
beyond, hence raising the cost of doing
business in the region.
Sources sa id Pres iden t Yower i
Museveni, who also met the delegation,
was concerned over the high cost
of transport between Kampala and
Mombasa and wants immediate action
to reduce it.
President Museveni said he looked
forward to the implementation of the
proposed East African Federation to
break all barriers across Kenya, Uganda
and Tanzania.
He said Uganda was part of the
global village and its goods should be
facilitated to reach all markets.
Mwakwere agreed with the President
and assured him of speedy attention to
all matters raised.
“Kenya
regards Uganda highly as its number
one trading partner in Africa and
efforts geared towards removing
all the bottlenecks that threaten
to backtrack the growth already
achieved will not be spared,” he
said.
In the Kenyan team were KPA Board
chairman, gen (Rtd) Joseph Kibwana,
the Managing director, Mr Abdallah
Mwaruwa, members Mr Jillo Komora
and Mr Eric Konchella. The Ugandan
side included executives of the Uganda
Private Sector Alliance, manufacturers
association, clearing and forwarding
associat ion and top government
officials.
Most exports and imports to the
landlocked country are transported
through the road after railway transport
O N T H E R O A D S
The most likely places for a carjacking are:
a High crime areas
b. Lesser- traveled roads
c. Intersections where you must stop
d. Isolated areas in parking lots
e. Residential driveways and gates
f. Traffic jams or congested areas
C a r j a c k i n g
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Cargo Movement to Kampala
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F R O M T H E C O U R T S
To many of us, the term
“contempt of court”
sounds greek or Latin.
Those in the legal profession
mainly understand this word.
In simple terms, contempt
of court can be defined as
an action or omission of
any kind that interferes with
the due administration of
justice by the various courts
of law. Contempt is classified
in various ways. The first
classification is:
(i) direct contempt – that
which occurs in open
Court e.g. foul language
spoken to a judge ,
interruption of court
proceedings;
(ii) Constructive contempt
(also known as indirect or
consequential contempt)
– results from actions
outside Court such as
failing to comply with
Court Orders,
The second classification is
that between civil and criminal
contempt; the former consists
in failing to do something
ordered by the court for the
benefit of another litigant
whereas the latter consists in
acts that obstruct justice.
(i) C i v i l c o n t e m p t –
disobedience to a court
judgment or process e.g.
breach of an injunction
(ii) C r i m i n a l c o n t e m p t
– conduct that obstructs
or tends to obstruct the
proper administration
of just ice e.g. using
threatening language or
creating disturbance in
court.
Why do Courts punish for Contempt?
The power of the court to
punish for contempt has
always existed since the
13th Century. That power is
well intended - to safeguard
the integrity of the justice
process by prevent ing
unwarranted interference with
the administration of justice
whether directed at judges,
witnesses or other persons.
Lord diplock in the case
of Attorney General v
Newspaper Publishing Plc
(1988) Ch. 333 C.A. was
emphatic as to the extend
the courts would go to
protect their dignity when
he observed thus:
“It is essential for the maintenance of the rule of law and good order that the authority and dignity of our courts are upheld at all times. This court will not condone deliberate disobedience of its orders and will not shy away from its responsibility to deal firmly with proved contemnors”
Source of power to punish for contempt
Courts in Kenya can
exercise power to punish
for contempt (i) under
section 5 of the Judicature
Act which gives power to
the High Court and Court
of Appeal to punish for
contempt of court which
power extends to upholding
the authority and dignity
of the subordinate courts
(ii) under Order 39 of the
Civil Procedure if a person
disobeys or breaches
an injunction granted by
court (iii) under Section
121 of the Penal Code if a
person shows disrespect
and interferes with conduct
of court proceedings and
(iv) ex facie curiae i.e.
contempt in the face of the
court if a person abuses a
judge or court, or attacks
the personal character of a
judge or writes or publishes
material calculated to lower
the authority or dignity of
the court or which interferes
with the due course of
justice or the lawful process
of court.
Disobedience of Court Orders
KRA is most susceptible to
a form of contempt of court
relating to disobedience
of court orders. Every
month KRA is served with
a number of court orders
restraining it from enforcing
certain collection measures,
directing it to release seized
goods, lift agency notices
served on taxpayers’ bank
accounts, process entries
for release of goods and
so forth. Some of the
court orders obtained are
outrightly ridiculous (no
contempt intended) in that
if the Authority were to
comply with them, it would
itself be in breach of the
law.
However, courts in this
Country have consistently
held that a court order
issued under the hand
and seal of court has to
be obeyed even if it is
obtained irregularly! The
proper thing to do if served
with a court order which is
obtained irregularly or one
compliance of which is not
possible without breaching
the law is to move back
to court immediately and
seek to set it aside, vary
or challenge it but not to
blatantly disobey it as doing
so will result into one being
found in contempt.
Punishment for Contempt of Court
Where a person is found
in contempt of court the
court may commit such
person to jail for a set term
or order him to pay a fine.
However the court may
discharge such person
if he purges himself (i.e.
takes remedial action) in a
manner acceptable to the
court. This could be by way
of apologising to the court
and aggrieved persons,
restoration of property
obtained in violation of the
court order or complying
with a court order initially
disobeyed.
George Kashindi
Contempt of Cour t
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F O R T H E C O M M U N I T Y
Gr a d u a t e T r a i n e e s
v i s i t e d C h r i s l a m b s
Children’s Home in the
nyali suburb of Mombasa. The
trainees donated foodstuffs,
assorted household items and
cash to the orphanage.
This is the second group of
gTs to initiate Corporate Social
Responsibility activities during
their training program. Last
year, graduate trainees visited
a number of homes during their
training in KRATI, Mombasa. One
such lucky home was the Calvary Zion
Children’s Home situated in Kiembeni,
a few kilometres from KRATI.
KRA has been running the graduate
Trainee Programme since 2002,
which has provided a
constant flow of fresh
g r a d u a t e s t o c a t e r
for manpower needs
occasioned by natural
attrition and changing
business processes. In
addition, the Authority
runs refresher courses
for existing serving staff
and short compliance-
oriented courses for
stakeholders.
Meanwhile, Kenya Revenue Authority
Peer Educators visited Oasis Africa
Children’s Orphanage as a way of
showing support for children orphaned
by HIV/AIdS and people living with
HIV/AIdS.
during the v is i t , the team made
donations of dry food, money and
clothes worth Kenya shillings one
hundred thousand shillings (100,000/)
generously contr ibuted by staf f
members and topped up by Authority.
Corporate Responsibility: Graduate Trainees with staff and children at the Chrislambs Children’s Home, Nyali, Mombasa.
Corporate
APA Insurance compensated the Authority for
the loss of one of its K9 dogs. The dog known
as “dJ” became terminally ill following a spell
of cancer and was euthanized on 25th May
2006 following recommendation
by the Veterinary doctors who
were attending to him.
T h e I n s u r a n c e
presented a cheque
of Kshs. 400,000 to the
Authority on 17th August 2006.
dC- Administration received the
cheque on behalf of the Authority.
KRA established the customs K9 Unit at Jomo Kenyatta
Airport (JKIA) in January 2005 to supplement the physical
checks and scanning checks the International airports
and ports. The two dogs procured from France by the
Authority in February 2005 are handled by Customs
personnel specially trained in Japan and are doing an
excellent job in frustrating the International Syndicate
using Kenyan as a transit point according to a survey
concluded recently.
The Authority intends to further equip the Unit and
procure drug/money laundering and explosive
detector dogs besides establishing canine
training school in the future.
Peer Educators presenting donations to the Children’s Home.
Social Responsibility
KRA Peer Educators at Kibera slums finding their way to Oasis Africa Children’s Orphanage Home.
Insurance Compensates for DJ’s Death
S T A F F N E W S
T h e S i m b a s y s t e m
has ful ly been l inked
w i t h t h e V e h i c l e
Management System to
facilitate smooth flow of
information. Information
captured through the
Simba System will be
a c c e s s i b l e v i a t h e
VMS, effectively retiring
Certificate of Clearance
which has traditionally
provided the critical link.
The biggest advantage
with this development
is that there is no more
data capture via the VMS.
All the fills are populated
through the Simba
system thus freeing
data capture staff
for redeployment to
other understaffed
functions.
RTd is current ly
l o o k i n g a t t h e
p o s s i b i l i t y o f
ensuring payment
of registration fees
through Customs at
the time of payment
of Customs duty.
This will ease pressure
on the RTd counters.
Once fully operational, it
will be possible to lodge
registration documents
and receive logbooks
within seven days.
vehicle Management System and Simba Interlink
QuoteWe think sometimes that poverty
is only being hungry, naked and
homeless. The poverty of being
unwanted, unloved and uncared
for is the greatest poverty. We
must start in our own homes to
remedy this kind of poverty.
It is easy to love the people far
away. It is not always easy to love
those close to us. It is easier to
give a cup of rice to relieve hunger
than to relieve the loneliness and
pain of someone unloved in our
own home. Bring love into your
home for this is where our love
for each other must start.
Mother Teresa
HR Revitalisation
Project The Human Resources Revitalisation Project Steering team held a workshop at the great
Rift Valley Lodge in naivasha from 17th to 18th August 2006. The project is among the seven being undertaken within KRA under t h e P r o j e c t Management and Business Analysis Office.
The objective is to motivate and prepare staff to cope with changes in the work environment. The project goals include to; mitigate the impact of the changes, enhance staff performance, to restructure the organisation, to provide need-based training, enhance HR service delivery and modernise KRATI.
Loraine Malinda, Deputy Commissioner - HR
Simeon Ole Kirgotty, Commissioner Motor Vehicles
1. SOCIALISMYou have two cows and you give one to your neighbour
2. COMMUNISMYou have two cows, the government takes both and gives you some milk
3. FASCISMYou have two cows, the government takes both and sells you some milk
4. NAZISMYou have two cows. The government takes both and shoots you.
5. BUREAUCRATISMYou Have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income.
6. AN AMERICAN CORPORATION
You have two cows. You sell one, and force the other to produce the milk of four cows. Later, you hire a consultant to analyse why the cow dropped dead.
7. A FRENCH CORPORATION
You have two cows. You go on strike because you want three cows.
8. A JAPANESE CORPORATION
You have two cows. You redesign them so they are one tenth the size of an ordinary cow and produce twenty times the milk. You then create a clever cow cartoon image called Cowkimon and market them worldwide.
9. A GERMAN CORPORATION
You have two cows. You reengineer them so they live for 100 years, eat once a month, and milk themselves.
10. AN ITALIAN CORPORATION
You have two cows, but you don’t know where they are. You break for lunch.
11. A RUSSIAN CORPORATIONYou have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have two cows. You stop counting cows and open another bottle of Vodka.
12. A SWISS CORPORATIONYou have 5000 cows, none of which belong to you. You charge others for storing them.
13. A CHINESE CORPORATIONYou have two cows. You have 300 people milking them. You claim full employment. High bovine productivity, and arrest the newsman who reported the numbers.
14. AN INDIAN CORPORATIONYou have two cows. You worship them.
15. A BRITISH CORPORATIONYou have two cows. Both are mad.
16. KENYAN CORPORATIONYou have two cows. You eat both.
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If this doesn’t beat the economics you learnt in school, I don’t know what will!Humour
Internet
Internal auditing is
an independent,
objective assurance
and consulting activity
designed to add value and
improve an organisation’s
operations. It helps an
organisation accomplish
its objectives by bringing
a systematic, disciplined
approach to evaluate and
improve the effectiveness
of risk management,
control and governance process.
The department was created in 1997 under Section 13 of the
KRA Act, Cap 469. The primary duty of the department is to
assist the KRA management, through accurate and timely
reports to discharge their responsibilities with respect to
financial reporting, internal controls and in the improvement
of KRA operations, systems and procedures.
Management is responsible for implementing an internal
control system that safeguards assets, ensure effective
revenue collection and ensure proper record keeping and
reporting. Internal Audit only makes recommendations and
not the actual implementation.
Internal controls or an internal control system is defined as
the integration of the activities, plans, attitudes, policies and
efforts of the people of an organization working together
to provide a reasonable assurance that the organisation
will achieve its objectives and mission. To provide for the
independence of the department, the Head of Internal Audit
reports administratively to the Commissioner general and
functionally to the Audit Committee of the board.
The process is initiated through the preparation of an
annual audit work plan, which is based on the process of
evaluation of internal controls and risk assessment process
and shows the annual audit activities and depicts the
coverage, resources requirements, staffing and time frame.
Internal Audit department discloses a wide variety of ways
to improve organization’s operations and programmes.
Audit follow-up has been defined as the process of
determining the adequacy, effectiveness and timeliness
of actions taken by management on reported audit
findings and recommendations with the of objective
of determining whether the audit findings have been
adequately addressed by fully implementing the agreed
audit recommendation(s)
The implementation of audit recommendations involves
taking corrective action based on the recommendations
made.
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M O R E N E W S
E m b r a c e “ I C E ”
In fo rmat ion
Communication
Technology
(ICT) department is currently in the
process of streamlining delivery of
ICT services to all KRA Information
Technology (IT) users.
The Senior deputy Commissioner
of ICT, Mr. Ezekiel Saina said ICT
Officers will visit all offices within KRA to ensure all computers
join a newly created domain. The exercise commenced in
September 2006 in Times Tower and extended to regional
offices and stations thereafter.
After the exercise the ICT officer will ensure that the users
continue accessing all ICT resources on ones computer as
before. The only noticeable change after this exercise will be
the respective logging in details procedures, which the ICT
officer should be able to take users through.
Any incidence should be reported to the Service desk on Ext
6100, 6101 & 4059.
The concept of “ICE” is
catching up quickly.
It is simple, yet an
important method of contact
during emergency situations.
As cell phones are carried by
majority of the population,
all you need to do is store
the number of a contact
person or persons who
should be contacted at
dur ing emergency as “
ICE” (meaning In Case of
Emergency).
The idea was thought up
by a paramedic who found
that when they went to the
scenes of accidents, there
were always mobile phones
with patients, but they didn’t
know which numbers to call.
He therefore thought that it
would be a good idea if there
was a nationally recognized
name for this purpose.
Fol lowing a d isaster in
London , the East Anglican
Ambulance Serv ice has
launched a nat ional “ In
case of Emergency (ICE)”
campaign.
In an emergency situation,
E m e r g e n c y S e r v i c e s
personnel and hospital staff
would then be able to quickly
contact your next of kin, by
simply dialing the number
stored as “ICE”.
Please forward this. It won’t
take too many “forwards”
before everybody will know
about this.
It really could save your life,
or put a loved one’s mind
at rest.
For more than one contact
name simply enter ICE1, ICE2
and ICE3 etc. A great idea
that will make a difference
ICT to Streamline ServicesWhat is Internal Audit?
Andrew K. Njoroge
Mr. Ezekiel Saina, SDC-ICT
Last year’s KECOSO games took place from 5th -12th
August 2006. These games bring together Parastals and
departments within the Transport and Communications
Sectors, under the Ministry of Transport and Information
and Communications. They include: Telkom Kenya,
Kenya Railways, and Kenya Ports Authority among
others.
The AIdS control unit of Road Transport
was invited to send peer educators to
educate both players and members
of public on the issues pertaining
to HIV/AIdS. This is the first time
ever for peer Educators from KRA
to interact with their counter parts
under the umbrella of KECOSO. It
was an experience that they can
never forget and are willing
to share with colleagues
within the Authority.
The team was lead
by Mr. El-Samma
ndegwa who is the
ACU desk officer Road
Transport.
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M O R E N E W S
AIDS Message to Players
Management Sensitized
The Cooperative Bank sensitized KRA’s Top Management and security committee members on Business Continuity Plan and disaster Management.
Participants learnt that business continuity planning is the process of ensuring that possible disruptions are anticipated and measures taken to prevent and or minimize subsequent impact of the disruptions. Other areas covered included disaster management and recovery.
The function was held on Friday September 29, 2006 at KRA Times Tower 30th Floor Boardroom.
KRA FC in Premier League
The KRA FC has qualified to take part in the KFF – 2006 -07 Premier League division One effective from September 2006.
The news follows the successful Club’s completion of the 2005 - 06 KFF nation Wide League where they have been playing for the last one year with renowned teams among them Panpaper FC, green Berets FC, Utawala FC is expected to play in the Premier League game effective from 7th and 8th October 2006.
KRA Library is being revamped to
enable it meet the information needs of
staff. In line with this, KRA has recruited
a librarian to steer the library services
to the right direction. For the library to
effectively serve staff, it requires input
from the users. The section recently
circulated a questionnaire on what
information and resources available in
the library.
Those who did not get a copy of the
questionnaire may get one from library
located on
the 33rd floor
of Times
Tower or
from Mary
gachihi- the
Librarian on
extension
5210.
Library Being Revamped
Mary Gachihi, Librarian
E m e r g e n c yS e c u r i t y N u m b e r s
The Board Secretary, Corporate Services &
Administration department wishes to bring to
the attention of all staff members the following
Emergency Security numbers in nairobi Area:
Radio Control: 2724201;
Police Headquarters: 2717777;
Pangani Flying Squad: 376 1111;
Police hotline: 240 000;
Parklands Police Station: 374 2702,
0721 364 999;
Industrial Area Police Station: 541 950;
Muthangari Police Station: 0721369 999;
Mlolongo – OCS Keter: 0723 834 582;
Industrial Area – OCS Muia: 0722 469 077;
Athi River – OCS Munga: 0722 393 363;
Parklands – OCS Mwaura: 0724 523 214;
Embakasi – OCS Wambugu: 0722 246 821;
Kenya Anti Corruption Hotline: 271 7468.
Meanwhile, the Library has
the following new books:
(1). Business Statistics
for Management and
Economics 7th Edition:
By daniel Terrel.
(2). Process Management
to Quality
Improvements: By Gary Born
(3.) Public Relations:
The Profession and
Practice 4th Edition:
By Otis Baskin, Craig Arnoff and Dan Latimore
(4.) Quantitative Methods
for Business decisions
5th Edition: By John Corwin and Roger Slatter among others.
�0
O T H E R N E W S
Kenya Revenue Authority hosted eleven lecturers from Baraton University’s School of Business
on Monday, 28th August, 2006 at the Registrar’s Board Room, Times Tower. The guests were led by dr. Tiengo, a senior lecturer in the department of Business Management at the University.
The meeting, which was organized by Taxpayer Services division in response to a request by the University, deliberated on the changes taking place in the business environment and the measures that the Authority is putting in place to mitigate these changes. Besides, the lecturers sought to understand what KRA expected of business graduates in terms of skills, knowledge and attitudes required to effectively discharge the duties of revenue collection.
The Baraton University’s School of Business currently offers a Bachelor of Business Administration (BBA) degree in Accounting, Management, Marketing, Business Information Technology and Office Administration, as well as a Bachelor of Science (BSc) degree in either Software Engineering or networking and Communication. A lot of graduates from the School of Business have been employed by Kenya Revenue Authority in the past. Hence, the need to appreciate the current revenue administration practices employed by KRA, and the Authority’s reform and modernization initiatives.
Kenya Revenue Authority has identified educational institutions and other
examining bodies as key partners in terms of disseminating taxpayer education and information, as a way of enhancing voluntary tax compliance. In this regard, the Authority is taking deliberate steps to create sustainable partnerships with these institutions. Towards this end, KRA is already negotiating with Kenya Institute of Education to explore ways of incorporating tax education in the schools curriculum. Plans are underway to start similar negotiations with Universities and other tertiary institutions. Forums such as this therefore, help in creating better understanding between the Authority and its diverse stakeholders, and hopefully translate to a positive attitude towards payment of taxes as the only way to guarantee the country’s financial independence.
The Baraton team was met by a group of senior managers/facilitators from all the revenue departments as well as ICT and Research and Corporate Planning divisions. Karen nginda opened the first session with a brief, but well thought out treatise on KRA mandate. The presentation was well received by participants. Charles Onduso’s delivery on Custom Services department elicited a lot of interest, particularly on the Simba 2005 system and its effectiveness in sealing avenues of revenue leakages. Mr. Onduso demonstrated unparalleled
mastery of his subject, and left the participants asking for more time.
H. M. Mugambi easily fused his mastery of the Income Tax Act, delivery prowess and sense of humour when he simplified the complex tax law in a presentation that left the participants wondering whether it was the same subject they had been made to believe was close to Rocket Science. In her characteristic simplicity and confidence, Judy
njagi ran the Professors through the VAT Act with particular emphasis on enhancing voluntary tax compliance through education and knowledge. She demonstrated that charging VAT correctly by a registered trader does not make the goods or services more expensive. To the contrary, she explained, those who were not registered stood to lose customers since they had to absorb the entire input tax, thereby making the products more expensive.
W. n. Okemwa and Robert Ouko gave a very eloquent and detailed account of RTd as a department that combines both service delivery and revenue functions. The duo dwelt at length on the various initiatives under the reform and modernization agenda that have seen the department transform from a shadowy division within the Ministry of Transport into a modern outfit that is effectively meeting the challenges of a very sophisticated clientele.
The man of the moment was Joseph Siror whose brief was to present on the Use of ICT in KRA Business. He caught the participants flat footed when he declared to them that at KRA they could take tea on-line. He went on to explain the capacity that had been developed in the area of ICT to support the core business of the Authority. Of particular interest to the participants was the advertent investment in modern technology as a way of not only keeping abreast of trends in business, but also to reduce lead time in service delivery and cost of doing business with Kenya Revenue Authority.
It was abundantly clear that the presentations exceeded the wildest imagination of the guests, not only in terms of the amount of information provided, but also the depth of knowledge manifested by all the presenters. The guests were highly appreciative of the co-operation they had received from the Taxpayer Services team as well as the presenters who demonstrated unparalleled mastery of their subject. At the end of the presentations, the guests presented Ezekiel Maru (dC, TPS) with a certificate of appreciation for the cooperation they had received from the Authority.
KRA Hosts Lecturers
KRA is already
negotiating with
Kenya Institute
of Education to
explore ways of
incorporating
tax education
in the schools
curriculum.
SDC - Rift Valley Region Hellen Bila (left) and Ezekiel K. Maru, DC - Taxpayer Services (extreme right) with trainers of Thogoto Teachers College in Nakuru during the National Music Festival.
Customer care is a
discipline that entails
creating a good rapport
between an organization
and its customers. good
customer relations require
possession of certain qualities
the most important being
patience. This is because of
the diverse nature of clientele
coming into the organization.
Other qualities are sound
judgement, versatility, orderly
thinking, and politeness. One
should also have a wide range
of knowledge on customer
needs and ways of meeting
them. Sensitivity to certain
situations will also go a long
way in helping sort out needs.
At the customer care level
you get to deal with all sorts
of people, some are polite
while others are very difficult
to handle.
“Customer care with a
smile” is all you should
a s p i r e f o r. Ta k i n g
initiative, to ensure that
every customer that
comes your way leaves
happy and satisfied and
would be happy to come
back.
different people bear various
burdens on a daily basis and
all staff should be sensitive
to how they handle clients
in order to give eff icient
services.
I discovered the secret and
this has helped me work
harder and gain satisfaction
in my work. I have learnt to
love my work no matter how
difficult the situation seams to
be. I listen keenly to problems,
which helps me understand
the situation better and read
the customers’ moods. I am
unique in my way of service,
having a good loving heart
and always being as attractive
as I can be. I even choose the
words I use with diligence.
This has made my work easier
as a customer care officer.
To make it easier on both
the customers, and myself I
always remember to smile.
A smile goes a long way
in smoothing problems so
dispense service with a smile.
Customer Care with a Smile
�1
O T H E R N E W S
One needs to have
seen KRA’s Mawenzi
1 houses area six
months ago to fully appreciate
the effort and energy that has
transformed the houses into a
posh and breathtaking estate
that befits the tranquillity of
the up market Upper Hill
area. KRA’s employees who
have the privilege of living
there can now take a walk in
the surrounding areas with
their heads held up high after
completion of renovation
works that cost the Authority
Ksh 56 Million. The 20
bungalows perched on a hill
that faces southwards, have
a clear view of the expansive
national Park and Lekenya
Hills in Ukambani. The Estate
now being referred to as
Mawenzi garden boasts
of new tarmac roads, a
perimeter stone wall complete
with modern light fittings,
brick pillars, a razor wire for
added security, exotic trees
along the wall, sprawling
well manicured lawns, short
hedges, a play ground, a
modern guard house-the list
is endless.
The bungalows have three
bedrooms, a servant ’s
quarters and a garage.
The Contractor completed
renovat ions at the end
May 2006 and handed the
houses back to the project
coordinator Ms Wairimu
ng’ang’a, KRA’s Board
Secretary in a ceremony
that was witnessed by SAC
Property Mr daniel Ogola,
the architect, mechanical
engineer and the Quantity
Surveyor among others.
Mawenzi II Estate is also
undergoing major repairs to
make it habitable. The estate
comprising of 50 housing
units is expected to be
ready by September 2006.
The project will cost Kshs
74 million. The units were
completely dilapidated. They
had leaking roofs, collapsing
staircases, worn out kitchens
and a burst sewer system. A
new sewer disposal system is
currently being installed and
the flat roofs were converted
into pitched roofs.
New Face of Mawenzi estates
Mawenzi 1 Estate: New gate house, renovated driveway and fresh lawns.
Mercy N. Wathika
Kenya Revenue
Authori ty has
establ ished a
scheme where those
offering information that
leads to the identification
or recovery of taxes
receive a reward based
on the tax involved.
Volunteers are assured
of strict confidentiality
t o s a f e g u a r d t h e i r
identities by ensuring
that only designated
senior officers handle
information. Volunteers
m a y a l s o m a k e
anonymous enquiries
t o u p d a t e t h e m s e l v e s
on any issues that may
require clarification. Where
physical appearance at the
KRA becomes necessary,
appropriate measures are
taken in order to protect the
informant from exposure to
unauthorized parties.
It is important that the identity
of the information supplier is
provided to the KRA in the
initial stage as this forms
the basis for determining
the recipient of the reward.
Additionally, KRA retains
residual discretion to make
payments on ly where
information supplied leads
to meaningful outcomes.
A p e r s o n s u p p l y i n g
informat ion may make
request for treatment in
a special manner where
they deem it necessary
t o s a f e g u a r d t h e i r
identity. This may include
a requ i rement fo r the
provision of information
or testimony outside KRA
premises.
Information suppl ied is
similarly meticulously vetted
to discourage witch hunting
and vendetta. no action is
taken therefore merely on
the basis of allegations or
complaints received before
exhaustive investigations
are undertaken to establish
veracity.
Among tax evasion areas
that may qualify for reward
include under-declaration
o f i n c o m e o r v a l u e s ,
falsification of documents,
presentation of falsif ied
f i n a n c i a l s t a t e m e n t s ,
fraudulent tax refund claims,
overstatement of input costs
or expenses and failure to
disclose taxable income or
use.
It is important that the identity of the information supplier is provided to KRA
in the initial stage as this forms the basis for determining the recipient of
the reward. Additionally, KRA retains residual discretion to make payments
only where information supplied leads to meaningful outcomes.
Information Reward Scheme
��
O T H E R N E W S
The Electronic Tax Register
(ETR) Section of The domestic
Taxes depar tment made
impromptu visits in nairobi on
19th & 20th September 2006
to check and enforce ETR
compliance.
Led by Mr. Caleb Makanga,
a Revenue Officer, the team
targeted taxpayers who are VAT
registered and are yet to fully
comply with ETR requirements
as per the VAT Act.
T h e y c o v e r e d b u s i n e s s
premises and surroundings
among them; cross l ine ,
K i r i n y a g a R o a d , Ko m b o
Mun iy i r Road, g ikomba,
ngara, Pangani, Koinange
Street, Tubman Road among
others.
ETR Team makes Impromptu Visits
KRA in January 2005 introduced Electronic Tax Register (ETR) as part of the Reform and Modernization Programme to enhance revenue collection.
T h e s c h e m e h a s t w o
components, namely:
• Information leading to the
identification of hitherto
undisclosed taxes – a
reward amounting to 1%
of the tax identified up to a
maximum of Ksh. 100,000.
• Information leading to
the recovery of hitherto
undisclosed taxes – a
reward amounting to 3%
of the taxes collected.
Mr. John Njiraini, Commissioner Domestic Taxes Department - LTO
Information Reward Scheme O T H E R N E W S
On the morning of the party,
everything on the 8th floor
of the RTd was in a bustle.
People were smartly dressed and
looking eager, excited and happy. Staff
strode proudly along the corridors
as covered trolleys were pushed and
concealed in a side store. It was the
day of the monthly senior staff meeting
but this one seemed to be a meeting
with a difference.
This is the day that the wel fare
committee had chosen to bid farewell
to two of its members who had retired
honoroubly from the Authority after
many years of exemplary and dedicated
service. At the end of 2005, Mr. Asford
Kar iuk i (SAC Regis t ra t ion) and
Mr.James Mbowo (PRO Registration)
had finally hanged up their boots and
left KRA after race well run. The two had
earned a chance to now rest and try
their hands at other pursuits.
Though Road Transport is a small
department by KRA standards, it is
very cohesive and staff have a warm
rapport that other departments not
only marvel at but also envy. The idea
of the RTd staff welfare Association
was conceived some time back but
was formally launched in March 2005.
The Registrar of Societies has officially
registered it. An interim committee
pending substantive elections of
officials runs the association. The
contributions are voluntary and paid
monthly.
The Patron is the SdC Ms. J. githinji.
The association caters for staff in such
instances as:
• Weddings
• Bereavement
• Retirement
• Cash ba i l on work re la ted
incarceration
Before the two retired, they were asked
to indicate what they would like the
association to buy for them as lasting
and enduring memories of their days at
RTd. The association strongly believes
in trying as much as possible to give a
gift that is not only appropriate but also
appreciated and not the traditional bike
or jembe. Things are done differently
here.
Mr. Kariuki indicated a desire for a
television and his wish was granted. He
got himself a 24-inch Sony Wega. I just
hope his neighbours did not invade his
residence especially during the world
cup season to benefit from the TV’s
superior quality. Oh Ashford! Happy
days are here for you with high quality
viewing. The thought makes one
yearn for time to roll on and bring their
own retirement and days of leisurely
viewing soon.
Mr. Mbowo on the other hand had a
totally different request. When staff and
taxpayers heard that he was retiring,
they were all surprised and wondered
why he was opting for early retirement.
The gentleman looked young and
spry and yes you’ve guessed it! He’s
a workout guru so he opted for gym
equipment. He got a machine with so
many functions that the sedentary and
unfit among us just looked down in
fear and shame. Wow! The joys of this
department never cease to amaze.
Mr. Kariuki gave a rousing speech on
the early aspects of his retirement and
his visions of the future. Mr. Mbowo
was in his rural home then and was
represented by his daughter Carol.
The registrar gave a speech and
presented the g i f ts a f ter which
everyone indulged in some beverages,
samosas and croissants.
Everyone had a good time and we
all wish them the best in their future
endeavors.
Farewell Party for RTD Retirees
Road Transport Department (RTD) Team led by Commissioner of Motor Vehicles Mr. Simeon Ole Kirgotty (standing 5th from right) during the farewell party for Ms. Jacquiline Githinji (in red) formerly SDC in the department. On her left is Mr. Kennedy Onyonyi, the incoming Ag. SDC. Ms. Githinji moved to Customs Services Department in the same capacity.
��
Senior deputy Commissioner - Central
Region Mr. Philip Odeny on 29th August
2006 launched the Regional Sports
activities by shooting the first ball and
playing in the first team. The Chief guest
was Mr. Benson Mutiria, Principal nyeri
Technical Training Institute.
The launch was at nyeri Technical
Training Institute and attracted over 30
employees led by the Senior Assistant
Commissioner in the nyeri station Mrs.
Eunice githuku who played the defense
in one of the soccer practice games.
Mr. Elijah nyaribo the Regional sports
coordinator said that the launch was a
sign of better things in future in view of
the Corporate Planned regional sports
competition.
The presence of Regional sports
representative to the national planning
commit tee Mr. Patr ick Kinyor i , a
professional soccer player has given staff
within the region hope to win and more so
flex their muscles in indoor and outdoor
games as they await competitions.
The main challenge according to the
coordinator is to bring the rest of the
region including Thika and Kerugoya on
board with a similar launch expected for
Thika Station next month.
Region Launches
S p o r t s KRA Board of directors led by Chairman Mr Leonard M.J.Mwangola toured the Western Region from 3rd to 5th May 2006. Also present were the Commissioner general Mr M.g. Waweru and Board Secretary Mrs Wairimu ng’ang’a. The tour covered Eldoret Airport, Kiptangich house, Kenya Pipeline depot, Malaba border post, Kenya Railways offices, Busia border station, Kisii, Isebania
border, TRA offices, Kakamega station and Kisumu.
In each of the stations the Board members were given an overview of achievements and challenges faced in revenue collection. The team had an opportunity to evaluate the facilities of the stations, the effects of the Reform
& Modernisation p r o g r a m m e s i n r e l a t i o n s t o C u s t o m s , Domest ic Taxes and Road Transport Departments as well as accommodation facilities for staff s t a t i o n e d i n
Western region.
The Minister of Finance Mr. Amos
Kimunya toured the Southern Region
from 23rd to 26th July 2006. The
Chairman of KRA Board of directors
Mr. Leonard M. J Mwangola and
the Commissioner general Mr. M.g.
Waweru accompanied the Minister.
They toured stations in Kil indini
harbour, namanga, Lunga Lunga,
Loitokitok, Lamu, Shimoni, Malindi,
Moi International Airport and KRATI.
The respective Regional Managers met
them and gave a tour of their stations.
The Minister also visited Changamwe,
nyerere and Soweto Estates.
The Commissioner for Customs
Se rv i ces Mrs . Wambu i namu,
Commissioner for domestic Taxes Mr.
Andrew Okello, Board Secretary Mrs
Wairumu ng’ang’a and Mrs. Hellen
Bila the Regional head
for Rift Valley were
also present.
SDC – Central Region Mr. Philip Odeny with a ball next to Mr. Patrick Kinyori in blue T- shirt regional sports representative and squatting left Mr. Elijah Nyaribo, sports coordinator central region among other players.
Board Tours Western Region
Minister Tours Southern Region
E v E N T S
Minister for Finance, Hon. Amos Kimunya addresses members of the public during his tour of the Southern Region. With him are CG M G. Waweru (right), KRA Chairman Leonard Mwangola and Commissioner Andrew Okello (partly hidden).
Working Tour: KRA Board Members accompanied by Senior Officers during the Western Region Tour.
Produced by Kenya Revenue Authority, Board, Corporate Services and Administration department, Times Tower, 1st Floor P.O Box 48240, 00100, nairobi • Tel: 020-2817052 • Fax: 020-242420 • E-mail: [email protected] • Website: www.kra.go.ke
