The Kenya Revenue Authority has explained why it will not renew the contract of outgoing Commissioner General Humphrey Wattanga, pointing to missed revenue targets during his time in office.
The decision comes a few months before the end of his term, with the agency’s board already starting the process of finding a replacement.
The move signals growing pressure on the tax authority to improve its performance at a time when the government is relying heavily on domestic revenue collection.
According to the board, the failure to consistently meet set targets raised concerns about leadership and overall effectiveness at the institution.
Board Chairperson Nderitu Muriithi said the decision followed continued criticism over KRA’s performance.
He noted that responsibility for results ultimately lies with the chief executive and the board itself. Muriithi made it clear that the board expects better outcomes going forward, adding that concerns about revenue collection played a direct role in the decision not to extend Wattanga’s tenure.
He also confirmed that Wattanga will proceed on terminal leave as part of a planned transition, allowing room for a smooth handover once a new Commissioner General is appointed.
The recruitment process is already underway, with the board aiming to identify a candidate who can strengthen revenue collection and restore confidence in the agency.
KRA has highlighted a challenge affecting tax collection in the country. The authority says a large portion of Kenya’s tax burden is still being carried by a relatively small group of taxpayers, mainly large and medium sized businesses as well as salaried workers in formal employment.
Officials note that millions of Kenyans operating in the informal sector are not fully captured in the tax system. According to Commissioner for Small and Medium Enterprises George Obell, many small businesses run by individuals are not contributing to taxes despite their significant numbers.
He pointed out that Kenya’s tax to GDP ratio remains below expected levels, indicating room for improvement in revenue mobilisation.
KRA says it plans to address this gap by widening the tax base and improving compliance.
The authority is focusing on digitisation and better tax administration systems to bring more people into the tax net.
These efforts come as the country faces a difficult economic environment, making efficient revenue collection more important than ever.
