The National Assembly Finance Committee has recommended the removal of Clause 52 from the proposed Finance Bill 2025, opposing a provision that would give the Kenya Revenue Authority (KRA) unrestricted powers to access personal and financial data of taxpayers.
Clause 52 seeks to repeal Section 59A(1B) of the Tax Procedures Act, a legal safeguard that currently prevents tax agencies from forcing businesses to disclose customer data. If enacted, the amendment would allow KRA access to mobile money records, bank transactions, and trade secrets without needing a court warrant.
“The provision does not meet the constitutional threshold set under Article 31(c) and (d) of the Constitution of Kenya, which guarantees every individual the right to privacy,” said the finance committee report, chaired by Molo MP Kuria Kimani
KRA referenced the taxpayer’s data protection
The committee also referenced Section 51 of the Data Protection Act, which outlined strict conditions under which data protection exemptions may be permitted. MPs concluded that current laws already grant KRA sufficient authority to access necessary data, provided a judicial warrant is obtained.
“This ensures that tax enforcement powers are exercised within a framework of legal oversight and due process,” the report read.
“Protecting personal privacy and adhering to judicial oversight not only reinforces public trust but also aligns Kenya’s approach with international best practices in data protection.”
The proposal had raised concerns from civil society and professional bodies, including the Law Society of Kenya (LSK) and KPMG East Africa, which submitted memoranda opposing the clause. They argued it would erode taxpayers’ rights to privacy, fair adjudication, and due process.
Mbadi speaking on the issue
Treasury Cabinet Secretary John Mbadi had defended the proposal, terming it a necessary step to curb tax evasion.
Also Read: Why KRA Will Access Your Personal Data After Finance Bill 2025 Changes
“If it were up to us, even those earning well like me would not be honest in paying taxes, I will probably return 50-60 per cent of what I am supposed to,” Mbadi said during a media interview.
“People love convenience, especially where money is involved. If you just let Kenyans pay taxes at will without being followed up, they will not,” he added.
KRA Chairperson Ndiritu Muriithi echoed the Treasury’s position, citing that out of 20 million registered taxpayers, only 10 million file tax returns, with six million of those filing nil returns.
“The question is, where are these 16 million Kenyans? Are they truly outside economic activities, and how then can we bring them to participate in financing the state?” he asked.
Also Read: KRA Explains Plans of Accessing Private Data in Finance Bill Proposal
The committee insisted that tax enforcement must not come at the expense of constitutional rights and has called on Parliament to reject Clause 52 as debate on the bill is set continue.
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