The Data privacy act, AI and Taxes

Weekly Briefings for Operators and Finance Leaders

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TUKA Newsletter & Stella Muraguri
February 26, 2024

The Data privacy act, AI and Taxes

We asked our experts…

For this week’s newsletter, we spoke with Stella Muraguri about the KRA, Data Privacy and how lawyers in financial services are leveraging AI.

First, let’s start with Stella Muraguri’s article about the stern enforcement of the new Data Privacy Rights Act by Office of the Data Protection Commissioner (ODPC). This example of enforcement and interpretation of the new act sheds light on the possible penalties business and other organizations could face. In this article, Stella Muraguri shared some tips for the stakeholders in similar cases to stay compliant and avoid penalties:

Data Privacy - A Wake-Up Call for Schools

Roma School, based in Uthiru, was recently penalized a substantial fine of Sh4.5 million by the ODPC for posting a minor's picture without parental consent

tukab2b.com/insights/data-privacy-a-wake-up-call-for-schools

We highly recommend Business owners and COOs to contract legal assistance in order to assess the legal relevance of the Data Privacy act to their business.

Now on to AI, Stella had a few thoughts about the KRA future use of AI tools to track tax evasion:

KRA Tech Driver Crackdown on Tax Evasion Though AI

Inside the KRAs plan to track tax evasion better this season

tukab2b.com/insights/kra-tech-driven-crackdown-on-tax-evasion-through-artificial-intelligence

As a counsel in financial services, what internal legal compliance practices do you think your clients could leverage AI for?

From Stella Muraguri | MMW Advocates:

There is obviously immense potential for AI to revolutionize internal compliance practices within financial service providers in Kenya and East Africa at large. Internal processes such as Know Your Customer (KYC) and Customer Due Diligence (CDD) can be streamlined by integrating AI-powered document review tools that extract and verify information from ID documents, financial statements, and other official sources.

Additionally, AI can be utilized for transaction monitoring and AML compliance where financial institutions could make use of machine learning algorithms to develop risk profiles for clients and transactions, prioritizing cases for further investigation based on risk scores.

In the financial sector, the importance of regulatory reporting and documentation cannot be underscored. The ability of AI to extract relevant data from internal systems and tailor them according to specific regulatory requirements can come in handy as an automation tool for generating regulatory reports.

Relevant news from this past week

Inside Kenya's Regulatory Landscape for Carbon Markets - Kenyan Wallstreet

Through our running series on the carbon market, we aim to build our collective knowledge to spur informed discourse. 

kenyanwallstreet.com/inside-kenyas-regulatory-environment-for-carbon-markets

Kenya Power gets nod to charge consumers in US dollars

This decision could impact financial planning and operations for businesses with significant electricity consumption

www.businessdailyafrica.com/bd/corporate/industry/kenya-power-gets-nod-to-charge-consumers-in-us-dollars-4536808

Pension funds allowed to ignore bond paper losses

There's a new measure allowing pension funds to ignore bond paper losses, potentially affecting financial reporting and investment decisions for companies with pension obligations

www.businessdailyafrica.com/bd/markets/pension-funds-allowed-to-ignore-bond-paper-losses-4536564

From our desk…

Here are the synopsis of our most recent articles:

Nairobi Unified Business Permit - Guide 2024

The Nairobi City County has put together a new Business permit worth exploring

tukab2b.com/insights/nairobis-unified-business-permit-ubp-guide-2024

Kenya's SEZs Get a Boost: What the Amended Bill Means for SMEs

The Kenya government is looking to make its Special Economic Zone more competititive

tukab2b.com/insights/kenyas-sezs-get-a-boost-what-the-amended-bill-means-for-smes

Options for Kenyan SMEs Facing Cash Flow Challenges

From Sacco loans to VC funds, we put together a comprehensive guide with links to other useful resources

tukab2b.com/insights/options-for-kenyan-smes-facing-cash-flow-challenges

Looking for a financial professional ahead of tax season? Let us know here

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