Lilian Nyawanda Steps In at KRA With Targets Still Out of Reach

Lilian Nyawanda has taken charge of Kenya Revenue Authority with a narrow window to close a widening revenue gap, setting out a plan anchored on systems rather than policy overhaul. Her appointment follows the exit of Humphrey Wattanga, leaving her to manage collections in the final stretch of the financial year.

By the end of March, KRA had collected Sh2.038 trillion. To meet the Sh2.97 trillion annual target set by the National Treasury, the authority must raise about Sh932 billion in the remaining three months. The gap places immediate pressure on execution rather than strategy design.

Nyawanda’s approach draws from her tenure in customs, where revenue performance has been stronger than in domestic tax units. She attributes that outcome to operational changes that reduced delays and tightened oversight. Digital clearance systems, centralised cargo monitoring and non-intrusive inspection tools have shortened processing times while limiting discretionary decisions at entry points.

“We focused on efficiency, transparency and technology-driven service delivery,” she said, describing a model where improved compliance follows from smoother processes.

The challenge now lies in extending that framework to the rest of the tax system. Domestic taxes, which account for the bulk of collections across large corporations, mid-sized firms and small businesses, have lagged behind targets. Replicating customs-style controls in these segments requires reworking how taxpayers are onboarded, assessed and monitored.

A key part of that effort is expanding the tax base. The authority is directing attention to informal enterprises, where compliance remains low. Officials plan to lean more on simplified processes and taxpayer education to bring more businesses into the system.

Enforcement remains part of the toolkit, particularly in areas such as smuggling and persistent non-compliance. But Nyawanda frames it as a last step. “Enforcement has its place, but our approach is to ensure there is a fair process before we get there,” she said.

Public criticism around delayed tax refunds also features in her early briefings. She acknowledges the backlog but links it to funding constraints tied to allocations from the National Treasury. While allocations have increased, payout timelines still fall short of expectations.

Internally, the authority continues to tighten controls against misconduct. Measures include an anonymous reporting platform, deployment of integrity officers across departments and lifestyle audits targeting unexplained wealth among staff. Increased reliance on automated systems is intended to reduce direct contact between officials and taxpayers, limiting opportunities for rent-seeking.

Nyawanda’s background spans both public administration and private sector tax roles, including work with multinational firms. That experience, she says, informs her focus on making compliance less burdensome for businesses while maintaining oversight.

Her tenure, though temporary, comes with long-term implications. If system-led reforms deliver stronger collections, they could reshape how KRA approaches revenue growth beyond the current fiscal year. For now, the immediate task is meeting targets under tight timelines while extending reforms across the broader tax base.

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