The Kenya Revenue Authority (KRA) was at pains to explain why it seeks to repeal Section 59A(1B) of the Tax Procedures Act, which currently prevents it from accessing trade secrets or personal customer data without a court order.
Speaking in a meeting with the Departmental Committee of Finance and National Planning on Saturday May 24, 2025, led by Molo Member of Parliament, Francis Kuria Kimani, KRA Commissioner General Humphrey Wattanga, along with his colleagues, detailed the reasons behind the Authority’s desire to repeal Section 59A(1B) of the Tax Procedures Act.
“The objective is not to open and avail data from our side to any other party, but for us to be able to acquire the data necessary for purposes of tax adjudication or tax assessment, so it will be data that will be incoming and not for us to share data,” Wattanga stated.
KRA Clarifies on Proposal Seeking to Access Citizens’ Data
At the same time, the Commissioner General noted that while the provision seeks to boost tax compliance and ensure KRA meets its targets, the Authority will address the issue of data privacy for citizens.
“We admit that’s a serious matter and we will address it,” Humphrey Wattanga stated.
The Authority Commissioner General’s response came after the National Assembly Chair of the Finance Committee raised concerns that the Authority’s proposal could infringe on citizens’ privacy.
“Chair, don’t you think that is a huge data privacy breach? Someone is clearly not doing their job. You have to own up that this is a breach and someone is not doing their job.”
“KRA must ensure that data being provided by Kenyans is safeguarded,” Kuria said.
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Additionally, the Molo MP highlighted concerns where the tax authority has been accused of easily accessing customer data. For instance, with just a taxpayer’s PIN, the portal can retrieve sensitive details including contact information, email address, residential location, and place of employment.
So far, the Law Society of Kenya (LSK), KPMG East Africa, Ernst & Young, CDH Law Firm, and civil society groups have submitted their views opposing the Kenya Revenue Authority’s (KRA) proposal in the Finance Bill 2025 to access citizens’ personal and business data.
LSK and Audit Firm Groups Submit Views on the Proposal
LSK argues that the proposal lacks judicial oversight, which is critical to protecting taxpayers’ rights.
It also contends that KRA’s existing iTax platform already raises privacy concerns, as it allegedly exposes sensitive information (e.g., contacts, employment details) using just a taxpayer’s PIN, increasing the risk of abuse if access is further expanded. Therefore, the amendment contradicts the Data Protection Act, which emphasizes data minimization, consent, and purpose limitation.
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On its part, KPMG East Africa, a prominent audit and advisory firm, argues that automatic access to trade secrets and personal data could discourage compliance and investment, as businesses and individuals may fear unwarranted intrusion.
Ernst & Young (EY), another leading auditing firm in the country, argued that the proposal risks violating constitutional and statutory protections under the Data Protection Act and could lead to legal challenges.
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