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.

This 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 Hon. Kuria.

The Committee further 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,” Hon. 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.”

Citing overwhelming public concern and constitutional considerations, the Committee concluded that the proposed amendment is both unnecessary and potentially unconstitutional.

"In light of the existing legislative provisions and the valid concerns raised by Kenyans, the committee resolved to reject the amendment in its entirety," Hon. Kuria informed the House.

The 2025, Finance Bill is at the second reading stage.