On May 1995, The Kenya Revenue Authority bill, a bill to establish the Kenya Revenue Authority as a central body for the assessment and collection of revenue, for the administration and enforcement of the laws relating to revenue and to provide for connected purposes was presented to the National Assembly by the then Minister for Finance, Musalia Mudavadi.
The bill was assented on May 31, 1995, and became a law on July 1, 1995. It became the Kenya Revenue Authority Act, 1995. No. 2 of 1995.
Speaking on Milele Fm on Tuesday morning, Mudavadi recalled the act while responding to a question from the hosts, Felix Odiwour aka Jalang’o and Chris Da Bass, relating to the recent Huduma number registration process.
“People should not be worried about Huduma number. A lot of things have been said about the registration but it is legit and accurate. I remember in 1995, under my tenure as finance minister, I brought up the KRA act which was later assented to. Most people accused it of being a 666 pin just like they say about Huduma number,” Mudavadi passionately defended.
Mudavadi was the fifth Minister for Finance. He managed the docket for four years, 1993-1997 after taking it over from Professor George Saitoti.
He was tasked with cleaning the excess money that had flooded the economy after the 1992 multiparty elections.
The land economist then presented the KRA bill to the National Assembly on May 1995. The bill was seconded by the then Minister for Labour and Manpower Development, Kenneth Masinde. Masinde concurred with the fact that the bill, if assented to, would take over the duties done by Income Tax, Custom and Exercise, Value Added Tax Departments, Road Maintenance Levy Fund, Air Passenger Service Act, Entertainment Tax, Traffic, and Licensing Act, and Second Hand Motor Vehicles Purchase Tax Acts.
All these bodies were being targeted by Mudavadi to be incorporated into one body, which became KRA.
The Kenya Revenue Authority was thus established by an Act of Parliament on July 1, 1995, Cap. 469 for the purpose of enhancing the mobilisation of Government revenue, while providing effective tax administration and sustainability in revenue collection.
The Board and Management of KRA have since its inception spent time and resources setting up systems, procedures and the adoption of new strategies aimed at enhancing the operational efficiency of the Authority's processes.
In particular, the functions of the Authority are:
To assess, collect and account for all revenues in accordance with the written laws and the specified provisions of the written laws.
To advise on matters relating to the administration of, and collection of revenue under the written laws
To perform such other functions in relation to revenue as the Minister (now Cabinet Secretary) may direct.
