Have you read the Finance Bill 2025? If passed, the amendment will empower KRA to request detailed data from businesses, including information from integrated management and transactional systems.
The Bill introduces key reforms aimed at strengthening the Kenya Revenue Authority’s (KRA) ability to enforce tax compliance and streamline revenue collection. Among the notable proposals is the removal of a restriction in Section 59A(1B) of the Tax Procedures Act that currently limits KRA’s access to certain types of taxpayer information.
This move aligns with the government’s broader strategy to improve tax efficiency, enhance accountability, and curb revenue leakages in an increasingly digital and complex economy. However, Concerns have also been raised regarding the KRA’s existing iTax business registration platform, which critics claim already allows retrieval of sensitive personal information such as contacts, email addresses, residential locations, and places of employment, simply with a taxpayer’s PIN.
This suggests a potential history of data privacy breaches even before the proposed legislative changes.
KRA Commissioner General Humphrey Wattanga, during one of the recent parliamentary hearings emphasized the importance of modernizing tax administration systems. The proposal, he noted, would enable KRA to more effectively analyze tax-related data and close compliance gaps. “Access to reliable, real-time data is essential in achieving a fair and robust tax system,” said Wattanga.
The government has continued to invest in digital infrastructure to support automation and data-driven oversight within the revenue sector. By integrating new data streams, KRA aims to improve service delivery to taxpayers while ensuring that tax laws are enforced consistently across sectors.
The Finance and National Planning Committee of Parliament has engaged with key stakeholders, including professional audit firms and industry players, to ensure that the proposed changes support national economic objectives. Discussions have also focused on upholding data protection and privacy standards as outlined under the Data Protection Act.
Regarding access to data, The KRA Commissioner General noted that it is part of the wider Digital Modernization Strategy that KRA is rolling out under the 9th Corporate Plan. He said, “We have already put in place immediate measures to swiftly disable loopholes on our portals that could be maliciously exploited to access personal taxpayer data. Our collaboration with the ODPC aims to ensure that we continuously improve the integrity of our systems, especially with regard to access to third party data.”
Finance Bill 2025 is currently under public review until mid-June 2025 to allow ample time for comprehensive review and feedback.