President William Ruto has signed into law amendments to the Kenya Revenue Authority (KRA) Act, introducing changes to the tax agency’s board structure and granting the managing director of the Kenya Ports Authority (KPA) a seat on the board.
The Kenya Revenue Authority (Amendment) Act, 2026, was signed at Eldoret State Lodge in Uasin Gishu County on Friday, October 16, following Parliament’s approval of the legislation on October 7.
The changes are intended to improve coordination between two critical public institutions whose operations intersect at the country’s ports, particularly in customs clearance, cargo handling and the collection of import-related taxes.
Under the new arrangement, the KPA managing director, currently Captain William Ruto, becomes a member of the KRA board, formally bringing port-management leadership into the governance of the country’s tax collection agency.
The move reflects the government’s push to improve operational efficiency by aligning institutions responsible for handling imported goods with the agency tasked with assessing and collecting the revenue due to the State.
Parliament backs changes to KRA governance
The amendment was sponsored by National Assembly Majority Leader Kimani Ichung’wah, who steered the Bill through Parliament before it was forwarded to the President for assent.
Beyond adding the KPA managing director to the board, the law revises provisions governing the tenure and termination of board members by removing distinctions previously made for ex-officio members.
The changes affect the legal framework applicable to the board’s membership, bringing the legislation into line with its intended composition and operations.
The National Assembly’s explanation for the KPA appointment is rooted in the close relationship between the two institutions. KRA collects taxes on imported goods, while KPA manages the port infrastructure through which much of Kenya’s international cargo passes.
Integrating the two institutions at board level could strengthen coordination in cargo tracking, customs processing and the identification of revenue due to the government.
However, the practical impact will depend on how the agencies implement the new arrangements and whether improved coordination translates into more efficient clearance processes and stronger compliance.
Who sits on the KRA board?
At the time the law was signed, the KRA board was chaired by Ndiritu Muriithi, with Commissioner General Adan Mohamed serving as the authority’s chief executive.
Other members included Attorney General Dorcas Oduor, Treasury representative Lawrence Kibet and independent directors Hadi Sheikh Abdullahi, Richard Boro Ndung’u, Lydia Cherono Rono, Risper Olick and Shimaka Leonard.
The inclusion of the KPA managing director gives port operations a more direct place in discussions at the tax authority’s governing level.
KRA’s board provides policy direction and oversight, while its management is responsible for implementing revenue collection strategies and administering tax laws.
The new arrangement therefore creates an institutional link between the agency responsible for collecting customs revenue and the authority overseeing a major gateway for international trade.
What the changes mean for Kenya
The reform comes as Kenya continues to rely on tax collection to finance public services, infrastructure and other government obligations.
Customs revenue is particularly important because imports entering through the country’s ports attract applicable duties and taxes. Delays in cargo processing, discrepancies in declarations and weaknesses in information-sharing can complicate revenue administration.
Closer cooperation between KRA and KPA could help address some of these challenges by improving the exchange of operational information and strengthening oversight of cargo movements.
At the same time, the appointment alone does not guarantee higher revenue collection or faster clearance. Those outcomes will depend on the effectiveness of systems, enforcement, accountability and the implementation of the new law.
The government will therefore face the task of ensuring that the expanded board structure produces measurable improvements rather than simply increasing institutional representation.
Other tax changes signed alongside the law
Ruto also assented to the Tax Laws (Amendment) Act, 2026, introducing measures affecting fuel taxation and construction materials.
The legislation maintains a reduced Value Added Tax rate of eight per cent on petroleum products, down from the standard 16 per cent, for an initial period of 90 days. The National Treasury Cabinet Secretary may extend the relief for a further 90 days through a Gazette notice.
The law also changes aspects of excise duty affecting construction materials, including tiles and certain glass products, with the stated objective of addressing costs in the building and housing sectors.
The measures come amid pressure on household budgets from fuel prices and the cost of construction. Their ultimate impact will depend on how businesses and suppliers respond to the revised tax provisions and whether the relief is reflected in prices paid by consumers.
A new chapter in revenue administration
The signing of the KRA amendment marks a change in how the government intends to coordinate two institutions central to international trade and public revenue.
By bringing the KPA managing director into the KRA board, the government is seeking to strengthen the connection between port operations and customs administration.
The immediate test will be whether the change improves information-sharing, reduces inefficiencies and helps safeguard public revenue without creating additional bureaucratic hurdles for traders.
For taxpayers and businesses, the significance of the law will ultimately be measured not by the expanded board alone, but by whether Kenya’s revenue administration becomes more efficient, transparent and responsive.
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