Full Case: Okiya Omtatah Okoiti v
Attorney General & Kenya Revenue Authority [2020] eKLR, Petition No.
156 of 2017
1. INTRODUCTION
1.1 This brief examines the judgment of the High Court of
Kenya delivered on 20th February 2020 in Okiya Omtatah Okoiti v
Attorney General & Kenya Revenue Authority [2020] eKLR, Petition No.
156 of 2017, wherein the Court upheld the constitutionality of sections
57, 58(2), 59 and 99 of the Tax Procedures Act, No. 29 of 2015
(hereinafter “the TPA”).
1.2 The petitioner, Mr. Okiya Omtatah Okoiti, had
sought a declaration that the said provisions were inconsistent with the Constitution
of Kenya, 2010, for allegedly violating the right to privacy
(Article 31) and the privilege against self-incrimination (Article
50(2)(l)).
2. ISSUES FOR DETERMINATION
2.1 Whether sections 57, 58(2), 59 and 99 of the Tax
Procedures Act infringe upon:
a. The right to privacy under Article 31 of the Constitution; and
b. The privilege against self-incrimination under Article 50(2)(l) of
the Constitution.
2.2 Whether the enforcement powers conferred upon the Kenya
Revenue Authority (KRA) by the impugned provisions are reasonable and
justifiable in an open and democratic society within the meaning of Article
24 of the Constitution.
3. STATUTORY FRAMEWORK
3.1 The Tax Procedures Act, 2015 was enacted to
harmonize and consolidate procedural rules relating to the administration of
tax laws in Kenya.
3.2 The impugned provisions grant the Commissioner of
Domestic Taxes the following powers:
- Section
57: Power to access premises and inspect goods, records, and equipment
for tax purposes.
- Section
58(2): Authority to require any person in custody of relevant
documents to produce them for inspection.
- Section
59: Power to obtain, extract, or make copies of such documents or
information.
- Section
99: Power to seize documents or items necessary for determining tax
liability and to penalize non-compliance by a fine not exceeding KShs.
1,000,000, or imprisonment not exceeding three (3) years, or
both.
3.3 Under section 6(1) of the TPA, KRA is obligated
to maintain the confidentiality of taxpayer information, save for the
exceptions enumerated under section 6(2).
4. PETITIONER’S ARGUMENTS
4.1 The Petitioner contended that the impugned provisions
unjustifiably infringed the right to privacy and the privilege against
self-incrimination.
4.2 It was further argued that KRA had previously exercised
these powers in a politically motivated manner, citing the 2017 incident
in which KRA allegedly requested Diamond Trust Bank to release the
financial information of H.E. Ali Hassan Joho, Governor of Mombasa
County.
5. RESPONDENTS’ ARGUMENTS
5.1 The Attorney General and the Kenya Revenue
Authority submitted that the provisions were consistent with the
Constitution and served a legitimate public purpose — namely, ensuring
compliance with tax obligations.
5.2 They further argued that any limitation of rights
occasioned by the provisions met the threshold of Article 24(1) of the
Constitution as it was reasonable, necessary, and proportionate to the
objective of safeguarding national revenue.
6. THE COURT’S ANALYSIS AND FINDINGS
6.1 The High Court dismissed the petition and upheld the
constitutionality of sections 57, 58(2), 59, and 99 of the TPA.
6.2 On the right to privacy, the Court held that:
- The
enforcement powers under the TPA are specific to tax administration and do
not amount to an unjustifiable intrusion into an individual’s private
affairs.
- The
confidentiality obligation imposed by section 6 of the TPA
adequately protects taxpayer information from misuse.
6.3 On the privilege against self-incrimination, the
Court reasoned that:
- The
right under Article 50(2)(l) does not exempt individuals from
fulfilling lawful obligations, including the duty to provide information
necessary for tax assessment.
- The
privilege cannot be used as a shield to obstruct lawful investigations or
conceal non-compliance with tax laws.
6.4 The Court therefore concluded that the use of
compulsory powers to obtain information from taxpayers or third parties
does not violate the right against self-incrimination.
7. RELATED JURISPRUDENCE
7.1 The Court distinguished this case from Robert K.
Ayisi v Kenya Revenue Authority [2018] eKLR, Petition No. 421 of 2016,
in which section 59(4) of the TPA was declared unconstitutional for
violating advocate–client privilege as protected under section 137 of
the Evidence Act (Cap 80, Laws of Kenya).
7.2 The Omtatah decision clarified that the
invalidity of section 59(4) was limited to communications between advocates and
clients, and did not affect the validity of the broader investigative and
enforcement powers under the remaining provisions of the Act.
8. IMPLICATIONS OF THE DECISION
8.1 The judgment affirms that the Kenya Revenue Authority
possesses broad statutory powers to obtain information from taxpayers and third
parties for purposes of tax enforcement and compliance verification.
8.2 The ruling strengthens the legal foundation for KRA’s
investigative mandate but also raises policy concerns regarding potential abuse
of these powers for politically motivated or selective enforcement.
8.3 The Court did not conclusively address mechanisms for
preventing such misuse, suggesting a need for continued legislative
oversight and administrative safeguards to ensure that enforcement actions
remain fair, transparent, and non-discriminatory.
9. CONCLUSION
9.1 The decision in Okiya Omtatah Okoiti v Attorney
General & Kenya Revenue Authority [2020] eKLR stands as a definitive
pronouncement that sections 57, 58(2), 59, and 99 of the Tax Procedures Act,
2015 are constitutional.
9.2 The Court’s reasoning underscores the principle that
while individual rights under the Constitution are fundamental, they are not
absolute and must be balanced against the State’s legitimate interest in
ensuring effective revenue collection.
9.3 Consequently, the Kenya Revenue Authority remains
lawfully empowered to invoke its statutory powers under the TPA, subject to
adherence to the principles of legality, proportionality, and confidentiality
enshrined in the Constitution.