In the early years of the twenty-first century, aging technology, disorganization, and corruption undermined the effectiveness of Kenya’s customs service as highlighted in a 2002 study by the World Customs Organization of port operations at Mombasa. Growing regional trade and domestic anti-corruption initiatives created pressure to improve customs operations. Neighboring countries had started to upgrade their ports and implement measures that would expand both regional and inter-continental trade. To control revenue loss and maintain a significant role in global trade, Kenya would have to streamline customs processes and improve accountability. In 2002, newly elected president Mwai Kibaki put his political support behind an effort to improve government services, reduce corruption, and boost the country’s financial position. The Kenya Revenue Authority, the agency responsible for customs, was at the center of the nationwide reform effort. Over the next several years, the authority’s new commissioner, Michael Waweru, and a handful of lieutenants reshaped record keeping, upgraded automation, raised the level of staff training, and succeeded in paving the road to future reforms.

Matt Strauser drafted this case study based on interviews conducted in Nairobi and Mombasa, Kenya by Kimberly Bothi in June and July 2012. Case published October 2014.

A complex paper-based city tax collection system made Rio de Janeiro a difficult environment for business and a source of lost revenue when Eduardo Paes became mayor in 2009. Elected on a promise to set the city’s fiscal house in order, Paes planned to implement an electronic invoicing system based on similar programs piloted in other Brazilian cities. A recent constitutional amendment required all levels of Brazil’s federal system of government to ease the burdens of the country’s tax system. Paes reasoned that the potential efficiency gain from a new system was among the few routes available for increasing revenue. His team had to overcome significant challenges to implement the new system and ensure participation by consumers in monitoring tax payments. Strong political and technical leadership, collaboration, and good design helped to successfully implement the new system, called Nota Carioca. This case study offers other governments at the national or subnational levels useful lessons in improving revenue administration and implementing reforms that feature information technology, stakeholder communication, and partnerships.
 
Neil Fowler drafted this case study based on interviews conducted in Rio de Janeiro, Brazil, in March 2014. The case was prepared by ISS in partnership with the World Bank as part of the Bank’s Science of Delivery initiative. Case published July 2014.