Would you be comfortable if your country’s tax agency had unrestricted access to your data: how much you make, what you do with your money, and what you spend on (and pay taxes for)?
That was the tradeoff buried in a clause Kenya’s Treasury proposed in the Finance Bill: faster tax enforcement in exchange for deep access to private data. Under pressure to raise KES 30 billion ($232 million) without introducing new taxes, the government is desperate to increase tax compliance among businesses and individuals.
But lawmakers in Kenya’s Parliament weren’t convinced. After a thorough review process, the Parliament rejected a clause from Kenya’s Finance Bill that would have granted the Kenya Revenue Authority (KRA) the right to dig into the data of Kenyans and businesses without a court order.
The proposal would have made KRA, the country’s taxman, near omniscient. With this oversight, the agency would have been able to sniff out hidden income of both companies and individuals, and tax accordingly. In cases of bank disputes, for example, when a bank files an appeal, KRA would have had the power to freeze accounts before any ruling had been made.
The law would have also given the taxman access to sensitive business information, which is tricky for consumer protection.
Yet, the KRA saw the clause as a shortcut to stronger enforcement. With direct access to bank records, mobile transactions, and company systems, it could work faster, avoid court delays, and lock in more revenue.
Know more: In another clause reviewed by Parliament, the KRA also proposed the power to seize taxpayer funds even while legal appeals were still underway. That means if you challenged a tax assessment in court, your bank account could be frozen before the case was even heard. This was rejected too.
Parliament made clear that fixing the country’s deficit can’t come at the cost of constitutional rights. Kenyans’ data are safe for now.
