The recent debate of the Finance Bill 2025 has rekindled this respect for the tax and individual privacy. The most controversial was the clause that was suggested to give the Kenya Revenue Authority (KRA) the free hand to access financial records of individuals, including bank account records and mobile money activity.
Parliament failed to pass the clause as it stood in a bold step that secured the right to privacy of millions of people in Kenya under their constitution. No one denies the fact that taxation plays an important role in national development. The government should have resources to pay for basic services like healthcare, education, infrastructure, and security.
Nonetheless, as the government tries to raise revenue, it has to be within the limits that the Constitution defines. Article 31 entitles all Kenyans to the right to privacy, and any effort to undermine this right should be taken carefully. This would have accorded KRA blanket powers without adequate supervision and protection mechanisms.
In the context of a country where data breaches, cybercrime, and sometimes abuse of authority are experienced, this could have made the country vulnerable, where the citizens were exposed to financial profiling, harassment, or politically-minded use of personal details. The issue of financial privacy is highly personal, and subjecting such confidential information to government agencies without clear restrictions will be highly risky.
Notably, the opening up of KRA to private accounts is definitely not the ultimate solution to the vice of tax evasion. The tax compliance difficulties experienced by Kenya are mostly related to system inefficiencies such as corruption, ineffective implementation, and ways of not sealing loopholes utilised by rich individuals and businesses.
Making the taxpaying responsibilities purely on the ordinary citizens will not only increase grievance among the masses but also worsen tax confidence in tax organizations.
To enhance tax compliance, the government should rebuild their confidence first. Voluntary compliance will be motivated by transparency and accountability on how the tax revenues are spent. Kenyans will readily pay their dues when they find that the money they pay in the form of tax is used by the government to construct schools, hospitals, and roads, among others, and not through greedy officials to line their pockets.
The failure of this invasive clause shows how strong the democratic institutions of Kenya are and how influential citizens can be. This is a need that is not an option, especially in today’s world where data is worth as much money as everything is turning digital. Kenya should also carry on with the face of a fair, just, and constitutionally-respecting tax reform. The two notions, that is, tax compliance and privacy protection, are not mutually exclusive, and one cannot exist without the other in a mature democracy.
