Saccos, Kepsa fight KRA bid to raid bank accounts

The Kenya Union of Savings and Credit Cooperatives (Kuscco) asked the National Assembly not to pass the proposal in the Finance Bill 2026, which would delete Section 42(14)(e) of the Tax Procedures Act, barring KRA from issuing agency notices or freezing accounts during a tax dispute. According to Kepsa, the agency notices would force third parties to remit funds to KRA before an appeal is heard, making the right of appeal illusory. Kuscco warned that such seizures would disrupt Sacco operations by restricting access to working capital and liquidity.