Finance Bill 2025: MPs Reject Proposal to Allow KRA Access to Kenyans' Personal, Business Data
- The National Assembly Committee on Finance and National Planning presented its report on Finance Bill 2025, after the nationwide public participation
- The committee, led by Molo MP Kimani Kuria, issued recommendations, urging lawmakers to approve the bill with the proposed changes
- Key among the recommendations is the dismissal of the proposal allowing the Kenya Revenue Authority (KRA) to access personal data
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
Members of Parliament (MPs) have dismissed key proposals in the Finance Bill 2025.
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According to the National Assembly Committee on Finance and National Planning report tabled in parliament, the proposal to allow the Kenya Revenue Authority (KRA) access to personal data is unconstitutional.
The Finance Bill 2025 proposed amendments to Section 59A(1B) of the Tax Procedures Act, which bars KRA from demanding integration with business systems to access trade secrets and personal data.
What MPs said about KRA access proposal
The committee, led by Molo MP Kimani Kuria, referred to the proposed provision to allow the taxman access as unnecessary.
The lawmakers noted that the proposed provision does not meet the threshold set out under Article 31(c) and (d) of the Constitution of Kenya, which guarantees the right to privacy.
They also cited Section 51 of the Data Protection Act, which prescribes clear conditions under which exemptions to data protection obligations may be permitted, and Section 60 of the Tax Procedures Act that grants the taxman sufficient legal authority to access necessary data for tax administration, subject to a court-issued warrant.
"In light of these existing safeguards, the committee concluded that the proposed provision is both unnecessary and potentially unconstitutional," read the report in part.
Kuria urged the House to approve the Finance Bill 2025 proposals with the recommendations provided in the report.
Why Kenyans opposed proposal to grant KRA access
The lawmaker said the committee considered the views presented by Kenyans during the public participation exercise and stakeholder engagement meetings.
Business leaders, individuals and organisations opposed the proposal, saying that giving KRA access to personal data will infringe Kenyans' privacy rights.
They argued that the powers granted to the taxman will lead to a potential breach of data privacy and confidentiality, which could result in cybersecurity risks for businesses.
Reasons KRA wants access to personal data
Meanwhile, the KRA defended the proposal to integrate its tax system with businesses.
KRA board chairman Nderitu Muriithi noted that the controversial bill only seeks to enhance tax compliance, curb evasion, and improve revenue collection.
Muriithi revealed that out of the 20 million registered taxpayers, only 10 million file their tax returns, with the majority filling nil returns.
He said the bill sought amendments to have all tax revenues collected at the point of transaction.
In the financial year starting July 1, 2025, the government planned to spend an estimated amount of KSh 4.29 trillion, which will be financed by KSh 3.36 trillion tax revenue collection plus other funding.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
