‘Can’t trust Kenyans to pay taxes at will’: Mbadi defends giving KRA access to customer data

Treasury Cabinet Secretary John Mbadi has defended the government’s move to give the Kenya Revenue Authority (KRA) powers to access the personal and financial data of Kenyans.

Through the 2025 Finance Bill, the Treasury wants Section 59A(1B) of the Tax Procedures Act, which bars tax bodies from compelling businesses to share customer personal data, deleted.

This would give KRA access to sensitive data such as mobile money and bank transactions as the authority seeks to nab tax evaders.

The proposal has, however, raised concerns about privacy violations, potential surveillance, and abuse of information.

In a televised Wednesday town hall on Citizen TV, the finance minister defended the controversial move, saying it is a necessary step to improve tax compliance and fund public services.

“Our constitution is robust and protects Kenyan’s privacy but we must be alive to the fact that to run our country, we must pay taxes. There are no two ways about it – it is compulsory,” Mbadi said.

He cited the challenges of voluntary compliance and the tendency among even well-off individuals to under-declare their incomes, saying, “If it were up to us, even those earning well like me would not be honest in paying taxes. I will probably return 50-60 percent of what I am supposed to.”

In Mbadi’s view, “convenience” often discourages people from paying taxes unless tight enforcement measures are in place.

“People love convenience, especially where money is involved. If you just let Kenyans pay taxes at will without being followed up, they will not,” he argued.

Even so, the minister stressed that the long-term solution lies in responsible public spending, which would win public trust in the government and encourage voluntary compliance.

“I think it is all about using the taxes well so that Kenyans love paying taxes, instead of feeling like they are being coerced to do so,” Mbadi said.

Mbadi has previously said KRA is not seeking to access Kenyans' personal or private data, telling Citizen TV on Monday that the taxman only wants financial information from banks and financial institutions to verify the accuracy of people’s tax returns.