LSK, Top Audit Firms Oppose Finance Bill 2025 Over Data Access and Spousal Liability Clauses

The Law Society of Kenya (LSK) and several top audit firms have strongly opposed key provisions in the proposed Finance Bill 2025, citing threats to personal data privacy and unfair financial obligations imposed on spouses of tax defaulters.

A contentious clause granting the Kenya Revenue Authority (KRA) automatic access to taxpayers’ trade secrets and personal data has attracted fierce criticism. The LSK, alongside KPMG East Africa, argued that the provision erodes fundamental rights to privacy and due process.

In parallel objections, Ernst & Young and CDH Law Firm challenged another clause in the bill that seeks to hold spouses of tax defaulters personally liable for their partner’s unpaid taxes.

“Someone seeking credit facilitation and defaults is a personal venture,” the LSK stated in its submission, underscoring that such liability should not be transferred to spouses.

Clause 50b of the bill, which seeks to extend the timelines for processing tax overpayment claims from 90 to 120 days (and review periods from 120 to 180 days), was also flagged for its potential to disrupt business cash flow and economic stability.

Moreover, the LSK criticized the proposal to remove the 15% income tax rebate for developers of at least 100 housing units annually — a policy designed to incentivize affordable housing. They warned that repealing the rebate could deter investors and slow down the government’s housing agenda.

The LSK and other stakeholders also objected to KRA’s proposed powers to issue agency notices even when taxpayers have lodged appeals with the Tax Appeals Tribunal or the courts, describing the move as premature and unjust.

“We will consider your views as stated,” assured Kuria Kimani, Chair of the National Assembly’s Finance and Planning Committee.

Public hearings on the Finance Bill 2025 are being held concurrently with deliberations on the Virtual Assets Providers Bill 2025, which seeks to regulate the rapidly growing cryptocurrency sector and related tax measures.

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LSK, Top Audit Firms Oppose Finance Bill 2025 Over Data Access and Spousal Liability Clauses