In Nairobi’s fast-paced commercial and innovation landscape, a proposed amendment to the Finance Bill 2025 has sparked a contentious debate on the delicate balance between government oversight and the rights of individuals and businesses.
At the centre of the debate is the proposed repeal of Section 59A(1B) of the Tax Procedures Act, a key legal safeguard that prevents the Kenya Revenue Authority (KRA) from accessing sensitive trade secrets or personal customer data without a court order.
The rationale is clear—such sensitive data should not be accessible on a whim, but through a judicially sanctioned process that ensures legitimate need and prevents arbitrary intrusion.
The proposed amendment, if assented into law, would give the KRA sweeping new powers to access personal data directly from businesses and financial institutions, compel disclosure of trade secrets and proprietary information during routine tax audits, effectively stripping away a layer of protection for crucial intellectual property and monitor financial flows in real time without judicial oversight.
This proposed change alters the existing legal framework, shifting from a system requiring judicial oversight to one granting the KRA autonomous power to access highly confidential information. The ramifications of such an expansive grant of power to the KRA are far-reaching.
According to the KRA, repeal of section 59A(1B) is necessary to boost tax compliance and improve efficiency. They argue that direct access to financial data is a crucial tool to combat tax evasion, identify hidden income and undeclared assets, expanding the tax base.
Conversely, the proposal has ignited strong opposition from businesses, civil society organisations, and legal experts who argue that unrestricted access to personal data violates constitutional privacy rights.
The debate also highlights how Kenya’s model diverges from global best practices, where access to private data is typically governed by independent oversight and strong legal frameworks.
Ultimately, this legislative shift pits the government’s need for tax transparency against the rights to privacy, confidentiality, and fair process.
While revenue collection is important, many fear that unchecked surveillance could diminish trust and reduce innovation.
As the Bill goes through Parliament, the question remains—will expanded powers deliver accountability and efficiency—or undermine trust, innovation, and constitutional freedoms?
The writer is a tax advisor with KPMG Advisory Services Limited and can be reached at [email protected]. The views are opinions are those of the author
