The Law Society of Kenya (LSK) and top audit firms have raised strong objections to controversial provisions in the Finance Bill 2025 that seek to expand the Kenya Revenue Authority’s (KRA) powers. Among the most contested clauses is one granting KRA automatic access to personal data and trade secrets, which LSK and KPMG East Africa argue would undermine taxpayers’ right to due process and fair adjudication.
The bill proposes that the KRA Commissioner be empowered to access confidential information and issue agency notices even when a taxpayer has appealed a decision at the Tax Appeals Tribunal or in court. Critics warn that this circumvents the legal safeguards meant to protect individuals and businesses during tax disputes.
Another clause attracting widespread opposition is the proposal to hold spouses of tax defaulters personally liable for outstanding tax obligations. Ernst & Young, CDH Law Firm, and the LSK unanimously rejected the provision during presentations to the National Assembly’s Finance and Planning Committee, arguing it erodes individual financial autonomy.
“Someone seeking credit facilitation and defaults is a personal venture,” LSK emphasized, maintaining that financial obligations should not be transferred to spouses who may have no involvement in the tax affairs in question.
Further objections were raised over Clause 50b, which proposes extending the processing timelines for tax overpayment claims. The new timelines would increase from 90 to 120 days for ascertaining claims, and from 120 to 180 days for review, a move stakeholders believe could disrupt business cash flows and economic stability.
Additionally, the LSK expressed concern over the proposed removal of the 15% income tax rebate for developers constructing over 100 housing units annually—a policy implemented in 2017 to encourage affordable housing. Scrapping this incentive, the society warned, could discourage both local and foreign investment in the housing sector.
National Assembly Finance Committee chair Kuria Kimani assured stakeholders that their concerns would be taken into account. Public hearings on the Finance Bill 2025 are being conducted alongside discussions on the Virtual Assets Providers Bill 2025, which aims to regulate cryptocurrency taxation and oversight.
