NAIROBI, Kenya — A highly contentious proposal within Kenya’s Finance Bill 2025/2026, which sought to grant the Kenya Revenue Authority (KRA) sweeping access to taxpayers’ personal and financial data, has been dropped following significant parliamentary opposition.
The controversial provision, designed to combat tax evasion, would have enabled KRA to access sensitive personal information, including mobile money and bank transactions, along with trade secrets, without judicial oversight. However, it faced strong resistance from a majority of Members of Parliament during the debate.
On Thursday afternoon, the National Assembly passed the Finance Bill 2025 by acclamation, clearing the path for it to be assented into law by the President. The parliamentary Finance Committee, chaired by Molo MP Kuria Kimani, noted in its report on the Bill that, after careful deliberation, it concluded the provision granting KRA access to personal data “does not meet the constitutional threshold set under Article 3I(c) and (d) of the Constitution of Kenya, which guarantees every individual the right to privacy.”
The committee further cited “Section 51 of the Data Protection Act, which outlines specific conditions under which exemptions to data protection may be permitted.”
Additionally, the committee emphasized that the existing legal framework already provides sufficient authority for the tax authority to access relevant data, provided they obtain a judicial warrant.
“This ensures that tax enforcement powers are exercised within a framework of legal oversight and due process,” the MPs in the committee affirmed.
Treasury Cabinet Secretary John Mbadi had consistently defended the proposed measure as a crucial step to enhance tax compliance. He had highlighted the challenges of voluntary compliance and the tendency even among affluent individuals to under-declare their incomes.
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“If it were up to us, even those earning well like me would not be honest in paying taxes. I will probably return 50-60 per cent of what I am supposed to,” Mbadi told Vivid Voice News last week.
He had further argued, “People love convenience, especially where money is involved. If you just let Kenyans pay taxes at will without being followed up, they will not.”
Similarly, KRA chairperson Ndiritu Muriithi had advocated for the proposed powers, arguing they would significantly boost revenue collections and effectively seal tax evasion loopholes.
Muriithi previously pointed out that out of 20 million Kenyans registered for KRA PINs, only approximately 10 million file their tax returns, with a substantial majority (six million) filing nil returns.
