Parliament has passed the Finance Bill 2025/2026 but not without a critical amendment that reflects growing concern over data privacy in Kenya. A controversial clause that would have allowed the Kenya Revenue Authority KRA to access personal financial data including mobile money transactions and bank records without a court order has been dropped.

The proposal faced strong resistance from lawmakers and the public alike who viewed it as a threat to constitutional privacy protections. The Finance Committee chaired by Molo MP Kuria Kimani concluded that the provision did not meet the constitutional standards outlined under Article 31 of the Constitution which guarantees every Kenyan the right to privacy. The committee also cited Section 51 of the Data Protection Act which outlines specific conditions and limitations for any exemptions to personal data access.

According to the committee the current legal framework already permits KRA to request access to necessary information provided there is judicial oversight. This ensures that enforcement of tax laws remains consistent with the rule of law and due process.

Treasury Cabinet Secretary John Mbadi had defended the proposal arguing that voluntary compliance in Kenya is low and that many high earners under declare income. In a televised interview Mbadi stated that if left unchecked even he might not be honest with his tax returns due to the temptation to hold on to income. His remarks were echoed by KRA Chairperson Ndiritu Muriithi who maintained that granting the authority wider data access would close revenue loopholes and boost collections.

Despite these arguments Parliament maintained that privacy cannot be compromised and that reforms in tax administration must be anchored in legal and constitutional safeguards. The Finance Bill now awaits presidential assent to officially become law.