Nairobi, Kenya – Treasury Cabinet Secretary John Mbadi has stood firmly behind a controversial proposal that would grant the Kenya Revenue Authority (KRA) power to access Kenyans’ personal financial records, saying tax evasion is too widespread to be left unchecked.
Speaking during a live town hall on Citizen TV on Wednesday, Mbadi dismissed privacy concerns, instead framing the proposal as a tough but necessary call in Kenya’s struggle to boost public revenue.
“You can’t trust Kenyans to pay taxes at will,” he said. “If you leave it to us, even those of us earning good money won’t be honest. Personally, I’d probably pay back only 50 or 60 percent of what I owe.”
The move is embedded in the 2025 Finance Bill, which seeks to scrap Section 59A(1B) of the Tax Procedures Act. The current law stops tax authorities from forcing companies to share customer data. If the section is repealed, KRA will have clearer access to details like mobile money and bank transactions, which it says are key to catching tax cheats.
A Sharp Divide
Critics say the changes could open the door to mass surveillance, privacy breaches, and misuse of sensitive information. Rights groups and digital privacy advocates have raised alarm over the lack of strong data safeguards and transparency.
“This isn’t just about tax,” said Nairobi-based lawyer and digital rights expert Wanjiku Gikonyo. “It’s about how far the state can reach into our private lives without clear oversight or protection.”
Mbadi, however, insists that the focus is purely financial. “We are not interested in people’s private messages or who they call. KRA is only looking at financial information — nothing more,” he told Citizen TV earlier in the week.
He added that strong constitutional protections remain in place and that any misuse of data by KRA officers would be punishable.
Trust and Taxes
Kenya’s government has long struggled with low tax compliance, even as it faces growing pressure to fund education, healthcare, and infrastructure projects. Experts say closing tax loopholes and boosting revenue is urgent, but how it’s done matters.
Mbadi admitted that poor public spending has weakened people’s trust in government, making them less willing to comply.
“We can’t just force people to pay. We also need to spend their money well so that they feel it’s worth it,” he said. “That’s how we build a culture where people pay taxes willingly.”
Economists say the balance between privacy and tax enforcement will be key in how this law plays out. “The idea makes fiscal sense, but public trust is fragile,” said Dr. Sarah Otieno, a public finance lecturer at the University of Nairobi. “Without strong checks and open communication, this could backfire.”
As the Finance Bill heads to Parliament for debate, Kenyans will be watching closely — not just for the outcome, but for what it says about the direction of the country’s democracy and the boundaries of state power.
