Taxpayers have received a major reprieve after the National Assembly blocked a proposal that would have allowed the Kenya Revenue Authority to access private financial and trade data without oversight. The Finance and National Planning Committee rejected Clause 52 of the Finance Bill, 2025, which had proposed to repeal Section 59A (1B) of the Tax Procedures Act, removing existing legal protections on financial privacy.

If passed, the clause would have granted KRA direct access to personal data, including bank and mobile money transactions, without the need for a court order. The committee dismissed the proposal, citing serious legal and constitutional concerns, particularly the right to privacy guaranteed under Article 31 (c) and (d) of the Constitution.

“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 which guarantees every individual the right to privacy,” the report reads. It also referred to Section 51 of the Data Protection Act, which outlines the limited conditions under which privacy rights may be limited.

The committee, chaired by Molo MP Kuria Kimani, noted that current laws already allow the Commissioner or authorised KRA officers to obtain financial data, but only through court-issued warrants. “The current legal framework provides adequate tools for tax enforcement while upholding constitutional rights. Removing these safeguards would undermine public trust and breach privacy guarantees,” it stated.

The report underlined the need for judicial oversight and strong legal boundaries when expanding the tax authority’s powers, adding that this also aligns with global best practices in data privacy.

KRA had argued in support of the clause, saying it would help track transactions in real-time and reduce tax evasion. The authority’s chairman, Ndiritu Muriithi, said only half of registered KRA PIN holders file their returns, and that the proposed changes would improve revenue collection.

KRA is expected to collect Sh2.76 trillion in ordinary revenue to fund the Sh4.3 trillion 2025/26 national budget, with income tax projected to be the largest contributor.

The committee’s report will now be tabled before the full House for debate and adoption.