How Far Will KRA Have Access to Kenyans' Bank Accounts? CS Mbadi Clarifies

Treasury Cabinet Secretary John Mbadi has addressed Kenyans' concerns regarding the 2025 Finance Bill proposal that seeks to grant KRA the powers to access bank details of taxpayers. 

Speaking on Monday, June 10, Mbadi explained that KRA would only be allowed to access financial statements, adding that the proposal did not grant any access to personal information.

Mbadi was referring to the Finance Bill amendments that proposed the deletion of section 59, 1B of the Tax Procedures Act, which bars KRA from integrating its systems with those of a business.

"The Data Protection Act is still in place, and no one will come for your personal information. KRA's interest is only in financial information and not your personal secrets," the CS clarified

"By the way, where are they going to seek this information? There is no personal secret. These are banks and financial institutions."

Mbadi explained that the proposal was necessary as it would help the taxman catch up with tax cheats who lie about their income when filing tax returns at the end of every financial year.

"Every year, we do self-assessment returns, and every year in June, people are told to file their returns. How does KRA determine that what you have self-assessed is correct?" he posed.

Also Read: Key Changes in Finance Bill 2025 & Why It Is Different

‍KRA Stance 

According to KRA's digital tax office representative, Nickson Omondi, the proposal is aimed at easing access to the financial statements of individuals.

Currently, the taxman can only request a taxpayer to furnish KRA with the financial statements should they have concerns over the payments of taxes.

"If KRA wants to know whether entity A is declaring their fair share of tax, we ask them for their bank account, and then they will provide us with their bank statements. 

"KRA will then look at the bank statements and compare them with what has been declared as their income, and if there are any variances, we always come back and ask why there are any differences," the officials stated during a past forum.

However, with the new regulations, KRA noted that it would directly have access to the details from the banks and other financial institutions.

"Instead of KRA asking you every now and then to give the statement, why not have the bank give us the statement in advance so that those who are tax cheats are caught in good time?" Omondi noted.

‍Opposition From Kenyans 

However, amid the drumming up of support by the government for the proposals, Kenyans have expressed reservations over the move.

For instance, National Assembly Finance Committee Chair Kuria Kimani revealed that the proposal was the most opposed in the current bill, which has been undergoing public participation.

"One of the issues that is coming out clearly from the counties that we have visited is the issue of data privacy. Many Kenyans have come out and said that they do not think KRA, having access to their private data, is good," he stated.

"The one thing Kenyans have said that they do not want is having KRA to access their private data. For instance, here in Kiambu, the AAK has said that when they are drawing a house design for someone, that information is private and therefore, they will find it very difficult to share that information with KRA."