The National Assembly’s Finance and Planning Committee has rejected a contentious clause in the Finance Bill, 2025, that sought to give the Kenya Revenue Authority (KRA) sweeping powers to access personal data from third parties without court oversight.
In its report tabled before the House, the Kimani Kuria-led committee raised constitutional red flags, warning that the proposed measure was not only unnecessary but also potentially unconstitutional.
The clause would have empowered KRA to compel banks, mobile operators, and digital platforms to hand over sensitive customer data — including trade secrets and financial records — without the taxpayer’s knowledge or consent.
“The proposed provision does not meet the threshold under Article 31 of the Constitution, which protects the right to privacy,” the committee stated.It noted that Kenya already has strong legal safeguards in place through the Data Protection Act, which allows exemptions only under narrow, proportionate, and lawful conditions. Additionally, Section 60 of the Tax Procedures Act already permits KRA access to data for tax purposes — but only with court-issued warrants.
“KRA already has legal channels to obtain information. This proposal amounted to an overreach and undermined personal privacy and commercial confidentiality,” the report read.The committee urged KRA to use existing mechanisms that respect due process and constitutional rights.
The proposal, aimed at enhancing compliance and curbing revenue leaks, drew sharp criticism from professional bodies, civil society, and legal experts.
The Law Society of Kenya (LSK), along with major audit firms including KPMG and Ernst & Young, termed the clause unconstitutional and warned it would severely compromise privacy protections and fair legal procedures.
Civil rights groups, including Amnesty International Kenya and ARTICLE 19 Eastern Africa, described the move as a dangerous step toward mass surveillance.
The Architectural Association of Kenya (AAK) added that the provision threatened intellectual property and professional integrity, potentially forcing architects and engineers to surrender proprietary client designs to tax authorities.
The Finance Bill, 2025, is still under parliamentary debate, with further amendments expected in the coming weeks.
