What you need to know:
- CS Yatani says Finance staff at City Hall will not lose their jobs.
The Kenya Revenue Authority (KRA) has taken over revenue collection in Nairobi
The taxman was on Friday gazetted as the principal revenue collector for the capital city by Allan Igambi, who is the county's Finance and Economic Planning executive.
KRA will start managing City Hall’s internal revenue collection from March 16 until 2022.
“Pursuant to Article 5.5 of the Deed of Transfer of Function from the Nairobi County government to the national government gazette on the February 25, 2020 and in accordance with section 160 of the Public Finance Management Act, 2012, the Nairobi County government appoints KRA as the principal agent for overall revenue collection for all county revenue, for a period of 24 months, with effect from the March 16, 2020,” the notice dated March 6, 2020 read.
The move came shortly after the gazettement of Mr Igambi by Governor Mike Sonko as the substantive Finance CEC, replacing Pauline Kahiga.
The handover was presided over by National Treasury Cabinet Secretary Ukur Yatani, National Treasury Chief Administrative Secretary Nelson Gaichuhie, Controller of Budget Margaret Nyakango and KRA Commissioner General James Mburu on Friday in a meeting with other top City Hall officials.
Mr Yatani, speaking during the handover, said the takeover will not affect City Hall staff working in the Finance department.
“There should not be cause for alarm as no one will lose their jobs. The decision to have KRA collect revenue on behalf of Nairobi County was arrived at following the signing of the Deed of Transfer between Nairobi County government and the State with the aim of enhancing efficiency and improving revenue collection,” said Mr Yatani.
On his part, Mr Igambi assured the national government that his office will work closely with the taxman by making available any relevant data or tools needed to make the process seamless as possible.
“We will work closely with KRA and do everything necessary to help the agency carry on the process without any hiccups,” he said.