Kenya’s 2025 Finance Bill seeks to repeal key privacy protections, reigniting concerns over state surveillance and crypto sector implications.
Kenya’s 2025 Finance Bill proposes deleting Section 59A(1B) of the Tax Procedures Act—potentially granting the Kenya Revenue Authority (KRA) broad access to private financial data.
The clause, introduced in 2024, bars KRA from demanding trade secrets or customer data. Its removal would let KRA access sensitive financial details, including mobile money and bank records, without explicit privacy safeguards.
A Renewed Push for Surveillance
The Treasury had tried a similar move in 2024 by proposing direct amendments to the Data Protection Act. That effort failed after backlash from the public, civil society, and lawmakers, citing constitutional violations of Article 31 on privacy.
Now, under Treasury CS John Mbadi, the state is taking a narrower path—quietly stripping privacy protections from tax laws instead.
Crypto Sector on High Alert
Kenya’s crypto community is wary. Removing Section 59A(1B) could open the door to intrusive monitoring of digital asset activity, including peer-to-peer transactions, despite the lack of a clear legal framework for crypto.
Without explicit crypto regulation, such enforcement could clash with privacy rights and risk chilling innovation in Kenya’s fast-growing digital finance sector.
Bottom Line
The government insists the move aims to close tax loopholes. But critics argue it undermines privacy and reopens a constitutional debate previously settled by public opposition.
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