MPs Push Back Against Proposed KRA Access to Private Data in Finance Bill 2025

NAIROBI, Kenya– The National Assembly Finance Committee has urged Parliament to remove Clause 52 from the Finance Bill 2025, which would effectively repeal Section 59A(1B) of the Tax Procedures Act.

That section currently prohibits the Kenya Revenue Authority (KRA) from compelling businesses to share customers’ personal data.

Under the proposed changes, KRA would gain “unrestricted access to trade secrets and personal data such as mobile money and bank transactions” in its efforts to identify tax evaders.

Critics argue that this poses serious privacy threats and could lead to the misuse of sensitive information.

In its report, chaired by Molo MP Kuria Kimani, the Committee determined that the clause “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.”

Lawmakers contend that Section 51 of the Data Protection Act allows exemptions only under strict conditions.

The Committee emphasized that existing law already permits KRA to access necessary taxpayer data provided they first obtain a judicial warrant, thus ensuring oversight and due process.

“This ensures that tax enforcement powers are exercised within a framework of legal oversight and due process.”

The move has drawn opposition from organizations like the Law Society of Kenya (LSK) and KPMG East Africa, who warn that such a measure would “significantly undermine taxpayers’ rights to due process and fair adjudication.”

In defence of the bill, Treasury Cabinet Secretary John Mbadi acknowledged the challenge of voluntary tax compliance.