The Kenya Revenue Authority (KRA) is seeking urgent legislative intervention to secure at least 2% of the national annual revenue as a guaranteed allocation, citing a crippling Sh24 billion budget shortfall.
Appearing before the National Assembly’s Finance and National Planning Committee, KRA Commissioner General Humphrey Wattanga said the current budgetary ceiling undermines the authority’s mandate and threatens its operations and development agenda.
“The provisional funding for 2025/26 stands at just 1.04%, compared to the required 1.29%, leaving a significant funding gap,” Wattanga told the committee chaired by Molo MP Kuria Kimani.
KRA had submitted a Sh57 billion budget proposal for the 2025/26 fiscal year but received only Sh27.89 billion—all earmarked for recurrent expenditure with no development provision.
The shortfall amounts to Sh24.13 billion, rising to Sh24.28 billion when donor-funded projects are excluded.
Wattanga said the situation is dire, with high staff costs and growing operational demands. He revealed that the authority needs to recruit 5,092 additional staff, including 1,300 in the coming financial year—at a cost of Sh3.6 billion—to meet performance targets.
The Commissioner General also cited high contracted service expenses of Sh11.14 billion, which cover systems maintenance, scanner licensing, security, medical insurance, and rent. He warned that underfunding has led to service withdrawals, pending bills, and contract defaults.
“Inadequate funding affects scanner procurement for critical border points and disrupts our service delivery,” he said.
For capital development, KRA is seeking Sh5.47 billion to equip offices with computers, vehicles, furniture, and other tools essential for productivity.
Wattanga emphasized the need for Parliament to amend the law and entrench a fixed percentage allocation to protect the agency’s core functions and long-term planning.