The proposal made by the National Treasury on Thursday is a slight tweak from what is contained in Finance Bill 2026.
Tax pundits are now warning that this proposal, if adopted and passed into law, is likely to see KRA engage in regulatory overreach.
A push by the National Treasury for taxpayers to secure mandatory stay orders to protect their accounts from being frozen by the Kenya Revenue Authority (KRA) has triggered a backlash from tax analysts and private sector players.
“To improve efficiency in tax administration, Finance Bill 2026 is proposing to allow tax assessments to be issued based on information lawfully available to the Commissioner. To further align enforcement of tax compliance, the Bill is proposing to amend the Tax Procedures Act to clarify that enforcement of tax collection when a judgment is in favour of the Commissioner shall only be suspended where a stay order has been granted,” Treasury Cabinet Secretary John Mbadi said in his 2026/27 budget speech on Thursday.
