Kenyans can breathe a sigh of relief after Members of Parliament blocked a contentious proposal that would have granted the Kenya Revenue Authority (KRA) broad powers to access taxpayers’ private financial data.
The Finance and National Planning Committee of the National Assembly rejected Clause 52 of the Finance Bill, 2025, which sought to repeal Section 59A (1B) of the Tax Procedures Act. This section currently provides legal safeguards protecting individuals’ financial privacy. If repealed, it would have granted KRA unrestricted access to personal and commercial financial data, including mobile money and bank transactions.
In its report, which is set to be tabled before the full House, the committee cited constitutional and legal concerns as the basis for its decision. The committee emphasized that the proposed provision failed to meet the threshold set by Article 31 (c) and (d) of the Constitution, which guarantees the right to privacy and protection from unnecessary disclosure of personal information.
Committee chairperson and Molo MP Kuria Kimani highlighted that Section 51 of the Data Protection Act only allows privacy exemptions under limited and clearly defined conditions. He noted that the current legal framework under Section 60 of the Tax Procedures Act already allows KRA to access relevant data but only through a court-issued warrant, ensuring necessary checks and balances.
“The current legal framework provides adequate tools for tax enforcement while upholding constitutional rights. Removing these safeguards would undermine public trust and breach privacy guarantees,” the committee noted.
KRA had defended the proposal, arguing it would enable real-time transaction tracking and improve tax compliance, especially since only half of KRA PIN holders file their returns. KRA chairman Ndiritu Muriithi insisted the amendment would boost revenue collection to support the government’s Sh4.3 trillion budget for 2025/26, which requires Sh2.76 trillion in ordinary revenue.
Despite the authority’s revenue concerns, the committee maintained that any expansion of KRA’s powers must align with global standards of data governance and be guided by judicial oversight. The full House is now expected to debate and vote on the committee’s recommendations.
