KRA Tax Disputes Resolution in Kenya
KRA Tax disputes in Kenya arise when a taxpayer disagrees with the Kenya Revenue Authority (KRA) regarding assessed taxes, penalties, interests, or other determinations under the tax laws.
The Tax Procedures Act, 2015, and the Tax Appeals Tribunal Act, 2013, set out the legal framework for resolving such disputes — whether administratively, through the Tax Appeals Tribunal (TAT), the High Court, the Court of Appeal, or via Alternative Dispute Resolution (ADR) under the KRA ADR Framework.
At Dennykins & Associates, we specialize in KRA tax disputes resolution and ADR services, guiding individuals and businesses through every stage of the process — from objections to appeals and negotiated settlements — ensuring compliance with the Tax Procedures Act and a fair outcome for our clients.
Levels of KRA Tax Disputes Resolution in Kenya
The tax law in Kenya recognizes four main approaches to resolving disputes between KRA and taxpayers:
- Administrative Decision – Lodging an objection to the Commissioner under the Tax Procedures Act.
- Quasi-Judicial Process – Filing an appeal with the Tax Appeals Tribunal (TAT).
- Formal Judicial Process – Appealing to the High Court and subsequently the Court of Appeal.
- Alternative Dispute Resolution (ADR) – Settling disputes through negotiation under the KRA ADR Framework, either before or outside tribunal proceedings.
These methods provide both taxpayers and KRA an opportunity to resolve tax disputes efficiently and in accordance with Kenyan tax law.
Tax Objection and the Objection Decision (Administrative Level)
Under Section 51 of the Tax Procedures Act, 2015, any taxpayer dissatisfied with a KRA decision must first lodge a notice of objection within 30 days of receiving the tax decision.
This notice must include:
- Specific grounds of objection,
- Proposed amendments to the decision, and
- Reasons supporting the amendments.
Additionally, the taxpayer must pay or make arrangements for the undisputed portion of the tax before filing the objection.
If valid, KRA must issue an Objection Decision within 60 days. Failure to respond within this timeline means the objection is automatically allowed by law.
Where delays or valid reasons exist (e.g., illness, absence from Kenya), the taxpayer may apply for an extension of time to lodge the objection.
Dennykins & Associates assists clients in preparing, lodging, and following up on objections, ensuring every procedural and documentary requirement under the Tax Procedures Act is met to avoid invalidation.
Appeals to the Tax Appeals Tribunal (TAT)
If dissatisfied with the objection decision, a taxpayer may appeal to the Tax Appeals Tribunal (TAT) under Section 52 of the Tax Procedures Act and the Tax Appeals Tribunal Act, 2013.
Key TAT requirements include:
- The taxpayer must have paid the undisputed tax or made an arrangement with KRA for its payment.
- A notice of appeal and memorandum of appeal must be filed, accompanied by a KSh 20,000 non-refundable filing fee.
- The TAT must hear and determine the appeal within 90 days of filing.
Although the Civil Procedure Act does not apply to TAT proceedings, parties may request to settle disputes out of the Tribunal through Alternative Dispute Resolution (ADR) — in which case, the time spent on ADR is excluded from the statutory 90 days.
Dennykins & Associates provides full representation before the Tax Appeals Tribunal — from drafting appeal documents to evidence presentation and post-tribunal compliance.
Appeal to the High Court
Under Section 53 of the Tax Procedures Act, a party dissatisfied with the Tribunal’s ruling can appeal to the High Court of Kenya within 30 days of receiving the decision.
At this stage, the dispute transitions from an administrative process to formal tax litigation.
The High Court handles three main categories of tax cases:
- Appeals from the Tax Appeals Tribunal
- Judicial Review Applications — where taxpayers challenge KRA’s abuse of power or procedural irregularities
- Constitutional Petitions — where taxpayers allege violation of constitutional rights
Dennykins & Associates supports clients through this litigation process by ensuring legal compliance, drafting submissions, and providing strategic courtroom representation.
Appeal to the Court of Appeal
If dissatisfied with the High Court’s judgment, either KRA or the taxpayer may appeal to the Court of Appeal within 30 days.
Appeals at this level are limited to questions of law, as provided under the Tax Procedures Act.
Dennykins & Associates works closely with legal counsel to prepare robust submissions that align with both statutory and constitutional frameworks, ensuring strong representation in appellate matters.
Alternative Dispute Resolution (ADR) Under KRA Framework
Alternative Dispute Resolution (ADR) has become one of the most effective and preferred methods of resolving tax disputes in Kenya.
It is governed by Article 159 of the Constitution, the Tax Procedures Act, 2015, and the KRA ADR Framework.
Through ADR, parties can negotiate and reach an amicable tax settlement without resorting to prolonged litigation.
The ADR process involves:
- Written request for ADR by either KRA or the taxpayer,
- Appointment of a neutral facilitator from KRA’s ADR Unit,
- Exchange of documentation and negotiation meetings, and
- Signing of a Settlement Agreement enforceable by KRA.
ADR is flexible, faster, and less adversarial — ideal for cases involving interpretation of facts, assessments, or reconciliations rather than purely legal questions.
At Dennykins & Associates, our tax agents and ADR specialists assist clients in:
- Evaluating ADR suitability under the KRA ADR Framework,
- Preparing negotiation strategies,
- Representing clients in ADR sessions, and
- Ensuring enforcement of settlement outcomes.
Settlement of Tax Disputes Out of Court or Tribunal
The Tax Procedures Act allows courts and tribunals to grant parties up to 90 days to settle tax disputes out of court under the ADR mechanism.
If the parties fail to reach a settlement within that period, the matter reverts to the tribunal or court for determination.
This approach — backed by Article 159 of the Constitution — reflects Kenya’s growing adoption of Alternative Dispute Resolution (ADR) as a tool to enhance tax compliance, reduce case backlogs, and promote cooperative engagement between KRA and taxpayers.
Why Choose Dennykins & Associates for Tax Dispute Resolution
- Authorized KRA Tax Agents – fully accredited and experienced in KRA dispute management.
- ADR & TAT Specialists — we’ve represented clients in successful ADR settlements and TAT appeals across Kenya.
- Strategic Documentation Support — precise, compliant objection and appeal drafting under the Tax Procedures Act.
- Cost & Time Efficiency — faster resolution through negotiation, reducing penalties and interest.
- Comprehensive Representation — from ADR to the Court of Appeal, we ensure your rights are fully protected.
Talk to Dennykins & Associates Today
Whether you’re facing a KRA tax assessment, objection, or tribunal appeal, we’ll help you achieve a favorable resolution.
Our experienced team of tax agents, ADR facilitators, and forensic accountants ensures your case is handled professionally and within legal timelines.
