KRA Fires 25 Employees Over Corruption Cases, Ksh549M Recovers

• KRA Fires 25 Staff Members: Demonstrating a firm anti-corruption stance, the Kenya Revenue Authority (KRA) terminated 25 employees in Q1 of FY 2024/2025 for misconduct.
• Ksh549 Million Recovered: Lifestyle audits led to the recovery of significant amounts of illicit wealth among KRA staff.
• Enhanced Technology Tools: Platforms like iWhistle and data-driven approaches are at the forefront of KRA’s efforts to combat corruption and seal revenue leaks.
• Strengthened Integrity Programs: Introduction of rewards for whistleblowers, risk-driven compliance systems, and inter-agency collaborations to boost accountability.
• Improved Public Trust: Significant progress reflected in KRA’s Corruption Perception Index (CPI), showing improved confidence in the tax administration system.

In an unprecedented drive to combat corruption, the Kenya Revenue Authority (KRA) has implemented sweeping reforms aimed at enhancing accountability, integrity, and public trust. These measures underscore KRA’s dedication to becoming a world-class institution while ensuring effective and transparent tax administration.

25 Employees Dismissed for Corruption

Over the first quarter (July to September 2024) of the Financial Year 2024/2025, KRA’s zero-tolerance approach to corruption led to the dismissal of 25 employees. This represents a sharp increase compared to the 7 summary dismissals recorded in the same period during FY 2023/2024. These terminations are part of a larger effort to cleanse the institution of unethical practices and rebuild public trust in its operations.

KRA Commissioner General Humphrey Wattanga emphasized the organization’s steadfast commitment to transforming into a model of integrity. “Through these strategic measures, including leveraging technology and fostering accountability, we are not only boosting revenue collection but also ensuring a transparent tax system that serves all Kenyans,” he stated.

Misconduct Sanctions: A Detailed Overview

KRA’s firm stance on ethical behavior is further reflected in the 84 misconduct verdicts issued during Q1 of FY 2024/2025. This marks a significant rise from the 37 verdicts recorded during the same period in FY 2023/2024. Here’s a closer look at the sanctions:

• Summary Dismissals: Increased from 7 to 25 cases.
• Termination of Services: Dropped from 8 to 3 cases, indicating a targeted focus on severe misconduct.
• Warnings and Lifting of Interdiction: Decreased from 7 to 4 cases, highlighting a more stringent approach to handling minor violations.

Lifestyle Audits Yield Results

One of the cornerstones of KRA’s anti-corruption strategy is the implementation of lifestyle audits. These audits assess discrepancies between declared income and observed wealth among employees. In FY 2023/2024, 41 lifestyle audits were conducted, leading to the recovery of Ksh549 million in illicit funds.

Leveraging Technology to Seal Loopholes

To enhance efficiency and transparency, KRA has turned to cutting-edge technology. The introduction of iWhistle, a web-based platform, allows the public to report corruption and tax evasion anonymously. This initiative alone facilitated the recovery of Ksh4.22 billion in FY 2023/2024, underscoring the potential of technology-driven solutions in combating corruption.

KRA’s technological tools not only address revenue leaks but also encourage greater public participation in holding the agency accountable. By providing whistleblowers with anonymity, iWhistle has empowered citizens to contribute to the fight against corruption.

Informers Reward Scheme: Incentivizing Integrity

Recognizing the importance of public collaboration, KRA introduced an Informers Reward Scheme. Under this program, whistleblowers receive 5% of the recovered tax, capped at Ksh5 million per case. This initiative not only incentivizes reporting but also fosters a culture of shared responsibility in combating tax evasion.

Additionally, KRA has established an Integrity Award Framework to celebrate employees who demonstrate exemplary support for organizational integrity. These efforts aim to create an environment where ethical behavior is recognized and rewarded.

Improved Corruption Perception Index

KRA’s intensified anti-corruption measures have significantly improved its Corruption Perception Index (CPI). The index rose to 30.0% in FY 2023/2024, up from 38.6% in FY 2019/2020. This improvement reflects growing public confidence in KRA’s ability to address internal corruption and enhance service delivery.

Risk-Driven Compliance Interventions

Adopting a proactive approach, KRA has implemented Risk-Driven Compliance interventions. These strategies involve detailed risk assessments and data analysis to ensure that actions are both justified and transparent. By clearly documenting the basis for its interventions, KRA not only enhances taxpayer confidence but also ensures robust audit trails.

Collaborative Measures and Inter-Agency Cooperation

KRA has embraced a Whole-of-Government approach to strengthen its anti-corruption efforts. This strategy promotes inter-agency collaboration to enhance compliance and curb tax evasion. By working closely with other public institutions, KRA has been able to share resources and intelligence, further bolstering its fight against corruption.

Corruption Prevention Committees

To maintain momentum in its fight against corruption, KRA has established Corruption Prevention Committees (CPCs) across its operational areas. These committees:

• Set priorities for corruption prevention activities.
• Report on emerging risks and recommend administrative actions.
• Evaluate the implementation of the Public Service Integrity Program (PSIP) on a quarterly basis.

Regional and International Frameworks

KRA’s anti-corruption initiatives align with broader regional and international standards. The Authority has adopted the East African Revenue Authorities (EARA) Anti-Corruption Framework, which includes whistleblower mechanisms and integrity communication strategies. Additionally, KRA is in the early stages of implementing the World Customs Organization East and Southern Africa (WCO ESA) Code of Conduct on Integrity.

Building a Transparent Tax System for the Future

KRA’s concerted efforts to eradicate corruption are not just about punishing misconduct but also about fostering a culture of integrity and accountability. By combining technological innovations, public engagement, and collaborative frameworks, KRA is setting the stage for a more transparent and efficient tax system. These reforms are critical in enhancing revenue collection and ensuring that tax administration serves the public interest.

The Road Ahead

As KRA continues to roll out its anti-corruption measures, its commitment to transparency and integrity remains unwavering. Through sustained efforts, the Authority aims to achieve the following:

• Further improve its Corruption Perception Index.
• Expand the scope and impact of lifestyle audits.
• Strengthen technological tools like iWhistle.
• Deepen collaboration with public institutions and international organizations.
• Recognize and reward ethical behavior among employees and the public.

By prioritizing these objectives, KRA is not only safeguarding public funds but also rebuilding trust in Kenya’s tax administration system. The bold steps taken today are paving the way for a future where corruption is no longer a barrier to progress.