The government plans to amend the Data Protection Act to allow the Kenya Revenue Authority (KRA) to identify potential tax discrepancies by analysing bank and mobile money transactions.

This is part of President William Ruto’s new grand plan to broaden the country’s tax base by catching tax evaders and raising revenue at a time when the taxman has been missing its revenue targets.

The radical plan is contained in the Finance Bill 2024. The Data Protection Act limits how personally identifiable data obtained by firms and government entities can be handled, stored and shared.

“The Bill seeks to amend section 51 of the Data Protection Act (Cap. 411C) to provide for the exemption of the processing of personal data that relates to the assessment, enforcement or collection of any tax or duty from the provisions of the Data Protection Act,” says the Finance Bill.