Legal and audit experts push back against controversial provisions in Finance Bill
Among the contested proposals is one that allows the Kenya Revenue Authority to access personal data and trade secrets automatically.
The Finance Bill 2025 is facing sharp criticism from major legal and audit bodies over provisions that many say threaten taxpayers’ rights and could hinder economic growth.
Among the contested proposals is one that allows the Kenya Revenue Authority to access personal data and trade secrets automatically, even when taxpayers have appealed decisions in court or at the Tax Appeals Tribunal.
This move has raised alarms about the erosion of due process and privacy protections for taxpayers.
The Law Society of Kenya and audit firms KPMG East Africa, Ernst & Young, and CDH Law Firm have strongly opposed a related clause that would make spouses liable for tax debts owed by their partners.
The legal bodies argue that tax obligations should remain an individual responsibility.
As the Law Society put it, "Someone seeking credit facilitation and defaults is a personal venture," underscoring that extending liability to spouses is unjust and could cause undue hardship.
Another point of contention is the extension of timelines for processing tax overpayment claims, with the bill proposing to increase the initial claim period from 90 to 120 days and review period from 120 to 180 days.
Opponents say this change would delay refunds, negatively impacting taxpayers’ cash flow and the wider economy.
This concern is heightened by the proposed removal of a 15% income tax rebate for companies that build at least 100 residential units yearly—a policy introduced in 2017 to boost affordable housing development.
The Law Society warns that scrapping this rebate may deter investors and slow down progress in addressing the country’s housing needs.
The National Assembly’s Finance Committee, chaired by Kuria Kimani, acknowledged these concerns during ongoing public hearings.
"We will consider your views as stated," he said, signaling that the committee is carefully reviewing the feedback before finalizing the bill.
These discussions are taking place alongside hearings on the Virtual Assets Providers Bill 2025, which seeks to regulate taxation in the growing cryptocurrency sector.
