Jinja South Division East MP Paul Mwiru has challenged the government's readiness to transition from Tax Identification Numbers to National Identification Numbers after his bank account was frozen when he tried to update his customer details with a newly issued national identity card. Speaking in Parliament on Tuesday, October 27, Mwiru said bank officials refused to accept his national identity card as sufficient proof and instead demanded a separate verification letter before they would unfreeze his account.
The planned change, which would use National Identification Numbers issued by the National Identification and Registration Authority as tax identifiers, is intended to reduce the need for taxpayers to maintain separate identification numbers across different government services. However, Mwiru's experience highlights a significant gap: banks lack clear procedures for verifying newly issued identity cards and updating customer identification details, despite the transition being on the government's agenda.
The legislator questioned how the government could implement a system-wide shift to NINs when citizens were already struggling to use national identity cards issued by the relevant authorities in routine banking transactions. His frozen account demonstrates the real-world consequences of unclear coordination between the National Identification and Registration Authority, tax authorities and financial institutions ahead of any formal changeover.
For savers and borrowers whose accounts face restrictions pending verification, such requirements can block access to financial services and create administrative delays. Clear guidance from all three sectors on which identification documents are acceptable and what additional verification requirements exist will be essential to prevent the NIN transition from creating unnecessary obstacles for taxpayers and other citizens.