The National Assembly Finance Committee has recommended the removal of a controversial clause in the Finance Bill 2025 that would have granted the Kenya Revenue Authority (KRA) unrestricted access to taxpayers’ personal and financial data.
Clause 52 had proposed to repeal Section 59A(1B) of the Tax Procedures Act, which currently bars KRA from compelling businesses to surrender client information without a court order. If passed, the amendment would have given the tax agency broad powers to access trade secrets, mobile money data, and bank transactions in the name of tax compliance.
Privacy concerns
Speaking on Tuesday, June 17, 2025, on the floor of Parliament during the first reading of the bill, Molo MP Kuria Kimani, chairperson of the Finance Committee, said the clause failed to meet constitutional privacy safeguards under Article 31(c) and (d) of the Constitution.
“This proposal does not meet the constitutional threshold and would infringe on the right to privacy,” said Kimani.
He emphasized that after extensive public participation and consultations with stakeholders, the committee found the clause unjustifiable.
He further cited Section 51 of the Data Protection Act, which outlines strict conditions for exemption from data privacy rights, noting that the current legal framework already allows KRA to access necessary data, provided it is done under judicial oversight.
Stakeholder resistance
Several stakeholders, including the Law Society of Kenya (LSK) and KPMG East Africa, opposed the clause, warning that it undermines due process and opens the door to surveillance and abuse.
Kimani said the committee’s stance aligns with global best practices, including the EU’s General Data Protection Regulation (GDPR), which enshrines strict data protection principles.
Treasury defend clause
Despite pushback, Treasury Cabinet Secretary John Mbadi defended the proposal, calling it a necessary tool to curb tax evasion.
He argued that relying solely on voluntary compliance has not yielded results, noting that even high earners often under-declare their income.
