The National Assembly’s Finance and Planning Committee has rejected a contentious proposal in the Finance Bill 2025 that sought to allow the Kenya Revenue Authority (KRA) to integrate its systems directly with banks.
In a report tabled in Parliament by Molo MP and committee chair Kuria Kimani, lawmakers ruled that the proposal violates the constitutional right to privacy, as guaranteed under Article 31 of the Constitution.
“On the proposal to grant the Kenya Revenue Authority (KRA) unrestricted access to personal data, the Committee previously deliberated and concluded that such a provision does not meet the constitutional threshold set under Article 31(c) and (d) of the Constitution of Kenya, which guarantees every individual the right to privacy,” the report reads in part.
The committee also cited Section 51 of the Data Protection Act, which outlines the strict conditions under which exemptions to data protection may be allowed, noting that the Finance Bill’s provision fell short of those legal safeguards.
In its analysis, the Kimani-led committee argued that KRA already has sufficient powers under the existing legal framework to access relevant taxpayer data without requiring direct integration with banking systems.
The move is a significant blow to the government’s efforts to widen the tax base through enhanced monitoring of financial flows. However, it has been welcomed by privacy advocates and opposition MPs, who had raised alarm over what they termed as overreach by the tax authority.
Debate on the Finance Bill 2025 continues in the National Assembly, with several other proposals still under scrutiny.
