Nairobi, June 17 – Kenyans have been granted a reprieve after Parliament’s Finance and National Planning Committee rejected a proposal in the 2025 Finance Bill that would have granted the Kenya Revenue Authority (KRA) broad powers to access personal financial information without court approval.
The contentious clause; Clause 52 sought to repeal Section 59A (1B) of the Tax Procedures Act, a move that would have eliminated key privacy protections and allowed the taxman unfettered access to individuals’ mobile money and bank transactions.
However, the committee, chaired by Molo MP Kuria Kimani, stood firm against the changes. In its final report, which will be presented to the National Assembly for consideration, the committee noted that the proposal did not meet constitutional standards, particularly those outlined in Article 31(c) and (d), which guarantee the right to privacy and the protection of personal information.
The MPs also referenced Section 51 of the Data Protection Act, emphasizing that any infringement on privacy must be tightly controlled and only permissible under specific conditions. They argued that existing laws already empower the KRA to access relevant financial data but only under judicial oversight.
“The law currently provides sufficient avenues for tax enforcement through court-issued warrants. Dismantling these checks would not only violate constitutional rights but also erode public trust,” the committee warned.
The clause had sparked widespread public concern, with many fearing it would open the door to mass surveillance and abuse of power. KRA, on the other hand, defended the proposal, saying it would enhance revenue tracking and reduce tax evasion. KRA chairman Ndiritu Muriithi argued that real-time access to transaction data was critical, especially given that only about half of registered PIN holders file their returns.
Still, the committee insisted that tax collection goals must be pursued within the bounds of the law. The Finance Bill, 2025, aims to help the government raise Ksh 2.76 trillion in ordinary revenue to support the Ksh 4.3 trillion 2025/26 budget.
The committee’s recommendations will now be debated by the full House.
