Kenya is considering removing a legal provision that protects personal and customer financial data from tax authorities. In the 2025 Finance Bill, the Treasury has proposed deleting Section 59A(1B) of the Tax Procedures Act, a clause introduced in December 2024 that bars the Kenya Revenue Authority (KRA) from compelling businesses to share trade secrets or personal data collected from their customers.
“Section 59A of the Tax Procedures Act is amended by deleting subsection (1B),” the proposed deletion reads.
The targeted clause states, “The Commissioner shall not require a person to integrate or share data relating to trade secrets; and private or personal data held on behalf of customers or collected in the course of business.”
Its removal would allow the KRA to demand access to sensitive financial information, such as mobile money and bank transactions, thereby bypassing protections designed to prevent overreach. The plan signals a renewed effort by the state to use data access as a compliance tool, while reigniting a debate over the limits of state power and privacy rights.
A similar proposal appeared in the Finance Bill 2024, where the Treasury sought to amend the Data Protection Act, 2019, to give KRA unfettered access to information held by data controllers and processors, including banks, telecom firms, utilities, schools, land registries and the National Transport and Safety Authority (NTSA), without a court warrant. The amendment was aimed at improving tax enforcement and raising an additional KES 302 billion ($2.3 billion).
However, the National Assembly Finance Committee rejected the proposal. The committee referred to Section 51 of the Data Protection Act, which outlines specific conditions for exemptions, noting that Section 60 of the Tax Procedures Act already grants KRA the power to access data with a warrant.
Civil society groups, including the Law Society of Kenya and Amnesty International Kenya, called the proposal unconstitutional. It was ultimately dropped after nationwide protests, part of a wave of youth-led demonstrations that escalated into violence.
The Kenyan government, under Treasury Cabinet Secretary John Mbadi, is attempting to regain access to sensitive information. This time, instead of amending the Data Protection Act, it seeks to quietly remove the privacy clause from the Tax Procedures Act. This would enable the same outcome through a narrower legislative route.
The government says the 2025 Finance Bill is focused on closing tax loopholes and expanding the tax base through administrative reforms. However, removing Section 59A(1B) would alter how KRA can access financial systems.
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