A Nairobi Court has temporarily halted the Kenya Revenue Authority’s (KRA) new organizational structure following a petition. The ruling cites concerns over a lack of public participation and potential conflicts of interest related to financial management practices. Significant changes, including an increase in organizational tiers, raise issues regarding KRA’s expenditures and adherence to constitutional principles.
The Nairobi Court has issued a suspension on the new organizational changes at the Kenya Revenue Authority (KRA) due to a petition from the Trusted Society of Human Rights Alliance. Justice Bahati Mwamuye of the Milimani High Court’s Constitution and Human Rights division characterized the ruling as a conservatory order that halts the implementation of KRA’s revised organizational framework, pending further hearings.
The petition alleges that KRA’s new structure fails to comply with constitutional mandates regarding public participation and financial management, specifically violating Articles 10, 232, and 236 of the Constitution of Kenya. The proposed changes will inflate the organizational tiers at KRA from ten to fourteen, significantly increasing the wage bill and straining financial resources.
Additionally, the petition argues that the restructuring integrates the Department of Supply Chain Management into the Office of the Commissioner General, which could create conflicts of interest regarding procurement and auditing, thus violating established guidelines under the Public Procurement and Disposal Act and the Public Finance Management Act.
The court has also included key stakeholders such as the National Treasury, the Public Service Commission, and the Salaries and Remuneration Commission in the proceedings. The hearing for the petition is scheduled to take place on March 31, 2025, while the ruling on the motion will be delivered virtually on April 28, 2025.
In summary, the Nairobi Court’s decision to suspend KRA’s organizational restructure highlights concerns regarding constitutional compliance and public financial management. The implications of this ruling may significantly affect KRA’s operational framework and financial stability. The legal process will continue with hearings set for the end of March and a ruling due in late April, keeping various stakeholders involved in the matter.
Original Source: allafrica.com
