OPINION: Why Adan Mohamed fits the moment KRA finds itself in

The appointment of Adan Mohamed as Commissioner General of the Kenya Revenue Authority marks more than just a leadership transition at Times Tower. It signals recognition that KRA’s challenges today are increasingly about the economy and longer purely about tax administration.

Kenya’s tax environment has undergone significant changes over the past few years. First, based on what we witnessed two years ago with the Genz protests and even as recent as this week with the matatu strike, revenue collection has become increasingly politically sensitive. In addition, businesses are under pressure from high operating costs, and taxpayers are increasingly vocal about compliance burdens and aggressive enforcement.

On the other hand, government financing needs continue to rise sharply, with the National Treasury relying heavily on KRA collections to finance an expanding national budget and debt obligations.

In this environment, the traditional profile of a tax administrator is no longer sufficient. A KRA Commissioner General must understand how businesses make decisions, how investors react to policy uncertainty, how financial systems work and how economic activity ultimately drives sustainable tax revenues.

That is why Adan Mohamed’s appointment stands out. His background combines something rarely found in public institutions: deep private-sector financial experience alongside a long record of public-sector reform and economic management.

Before entering government, Mohamed built one of the most successful executive careers in Kenya’s banking sector. He became the youngest Managing Director of a multinational bank in Kenya when he took over Barclays Kenya at the age of 38. Under his leadership, Barclays Bank Kenya became the first sub-Saharan subsidiary to surpass Ksh 10 billion in profit while significantly growing assets, operating income and regional presence.

But perhaps more important than the numbers are the exposure that role gave him. Running banking operations across multiple African markets meant dealing directly with regulators, investors, compliance systems, monetary policy environments and cross-border business realities. That experience becomes highly relevant for KRA at a time when investor confidence and tax policy are becoming increasingly intertwined.

Today, KRA is no longer simply collecting customs duties and corporate taxes. It is dealing with digital transactions, fintech platforms, cross-border commerce, betting taxes, virtual assets, data-driven enforcement systems and increasingly complex compliance frameworks. The authority is becoming more technology-driven and more economically consequential.

That requires leadership capable of understanding the broader economy, not just tax procedures.

Mohamed’s record in government also explains why the Board may have viewed him as uniquely suited for the role. During his years overseeing trade, industrialization and regional integration, Kenya undertook some of the most ambitious business and regulatory reforms in its recent history. The country improved from position 136 to 56 in the World Bank Doing Business rankings within five years, becoming one of the world’s most improved reformers during that period.

His tenure also coincided with major reforms in business registration, insolvency laws, trade facilitation, special economic zones and digitization of government services. These reforms were not merely bureaucratic exercises. They were aimed at making Kenya more investment-friendly, improving enterprise growth and supporting formal economic activity.

That distinction matters because one of KRA’s biggest problems today is the narrowness of the country’s tax base. The authority continues to depend heavily on a relatively small pool of compliant businesses and salaried workers while much of the informal economy remains outside the tax net. Meanwhile, businesses within the formal sector increasingly complain about compliance costs, unpredictable tax disputes and pressure-driven enforcement approaches.

This has contributed to a growing trust deficit between KRA and taxpayers. Many businesses now see KRA less as a facilitator of economic growth and more as a punitive enforcement institution. Whether fully justified or not, that perception affects voluntary compliance, investment sentiment and business confidence.

The next Commissioner General, therefore, inherits not just a revenue collection challenge, but also a relationship challenge. Mohamed’s experience engaging investors, coordinating reforms and working across both government and private-sector ecosystems could become particularly important in this regard. His track record suggests familiarity with the delicate balance between regulation and economic growth, a balance KRA will increasingly need to manage carefully.

His background in industrialization and SME development may also prove relevant as KRA attempts to widen the tax base. Under programmes initiated during his tenure, SME financing expanded, export-oriented manufacturing grew, industrial parks were developed and investment mobilization accelerated across several sectors. This matters because Kenya’s future revenue growth will ultimately depend less on squeezing existing taxpayers harder and more on growing formal economic activity itself.

KRA is also entering a period of major internal transformation. Systems such as eTIMS, automation of compliance functions and expanded use of data analytics are changing how the institution operates. While digitization is necessary for reducing leakages and improving efficiency, it has also increased complexity for many SMEs and smaller taxpayers. Managing that transition will require not only technical understanding, but also organizational leadership and change-management capability.

Ultimately, the Board’s decision reflects an understanding that KRA’s future success depends on more than enforcement targets. Its next leader therefore needed to be someone capable of operating comfortably in the intersection of economic growth, public trust, and the overall business environment. This is where Adan Mohamed’s career has largely been built around.

James Mworia is the Group CEO, Centum Investment Company Plc