The National Assembly Committee on Finance and National Planning has rejected a proposal by the National Treasury that sought to grant the Kenya Revenue Authority (KRA) sweeping access to personal data, including trade secrets and confidential customer information.
The decision was announced when Committee Chairperson and Molo Member of Parliament, Hon. Kimani Kuria, tabled the Committee’s report on the Finance Bill, 2025.
Clause 52 of the Bill proposed to expand KRA’s access to personal and proprietary information for purposes of tax compliance.
However, the committee found the provision problematic after careful examination and extensive consultations.
“The Committee thoroughly scrutinised this provision, and after robust public participation and consultations with key stakeholders, we determined that it fails to meet the constitutional threshold under Article 31(c) and (d), which safeguard the right to privacy,” stated Kuria.
The Committee also noted that Section 51 of the Data Protection Act, 2019, already outlines limited and clearly defined grounds under which personal data may be exempted from protections.
Similarly, Section 60 of the Tax Procedures Act provides KRA officers with sufficient authority to access relevant data for tax administration purposes, subject to court-issued warrants.
“If you refer to the Tax Procedures Act, it clearly authorises KRA to require businesses to integrate with its systems. Additionally, it allows for access to necessary taxpayer information through a court order,” Kuria explained.
He added, “We believe the existing legal framework strikes the right balance between empowering tax enforcement and safeguarding the privacy of individuals and businesses. Therefore, we see no justification for granting KRA unrestricted access to sensitive personal and commercial data.”
KRA had defended the proposal, saying the move will enable them to catch up with tax cheats and Kenyans engaged in money laundering.
