A Kenya Revenue Authority assessment is not the final word on what a taxpayer owes. The Tax Procedures Act 2015 and the Tax Appeals Tribunal Act 2013 together create a structured, deadline-driven pathway for disputing a tax decision, beginning with an internal objection to KRA and, where necessary, escalating to an independent tribunal and ultimately the courts. Missing any one of the strict statutory deadlines in this process can permanently extinguish a taxpayer’s right to challenge an assessment, which makes understanding the sequence essential for any business or individual facing a disputed tax position.

What Counts as a Tax Decision

Under section 2 of the Tax Procedures Act, a tax decision generally means an assessment or a determination of the amount of tax payable, or that will become payable, by a taxpayer. Tax decisions commonly arise from a KRA audit, an amended assessment, a default assessment where no return was filed, or an advance assessment issued in circumstances such as the taxpayer leaving Kenya, bankruptcy, liquidation, or death. KRA is not bound by the figures in a taxpayer’s own return and may assess liability based on whatever information is available to it.

Step One: The Notice of Objection

Section 51 of the Tax Procedures Act gives a taxpayer who disagrees with a tax decision the right to lodge a notice of objection with the Commissioner. This must be done within 30 days of being notified of the decision, and the clock begins running from the date the assessment notice is issued, not from when the taxpayer actually reads it or consults an adviser. A valid notice of objection must:

• State precisely the grounds of objection
• Specify the amendments required to correct the decision
• Set out the reasons supporting those amendments
• Be accompanied by payment of the tax not in dispute, or an approved arrangement to pay it
• Include all relevant supporting documents

If the 30-day window is missed, a taxpayer may apply in writing to the Commissioner for an extension of time under section 51(6). If KRA refuses the extension, the taxpayer is not entirely without recourse: that refusal can itself be appealed to the Tax Appeals Tribunal, or challenged through judicial review at the High Court if the refusal was unreasonable or procedurally unfair.

Step Two: KRA’s Objection Decision

Once a valid notice of objection is lodged, the Commissioner must issue an objection decision within 60 days of receiving the notice, or any further information requested from the taxpayer. If KRA fails to respond within this 60-day window, the objection is deemed allowed in the taxpayer’s favour by operation of law. This is a powerful safeguard against administrative delay, but taxpayers should not rely on it passively. Decisions and correspondence are often issued through the iTax portal without a separate notification, so it is important to monitor iTax actively throughout the 60-day period rather than waiting for an email.

The objection decision will either fully allow the objection, partially allow it, or disallow it entirely, and must include a statement of findings on the material facts together with reasons for the decision.

Step Three: Appeal to the Tax Appeals Tribunal

Where a taxpayer is dissatisfied with the Commissioner’s objection decision, in whole or in part, section 52 of the Tax Procedures Act allows an appeal to the Tax Appeals Tribunal in accordance with the Tax Appeals Tribunal Act 2013. The Tribunal is an independent quasi-judicial body, separate from KRA, staffed with members experienced in law, accounting, taxation, and business.

A notice of appeal must be lodged within 30 days of receiving the Commissioner’s objection decision. For the appeal to be valid, the taxpayer must have paid the tax not in dispute, or entered into a payment arrangement with the Commissioner for that undisputed portion, and must pay a prescribed filing fee, commonly cited at KES 20,000. Within 14 days of filing the notice of appeal, the taxpayer must submit supporting documents including a memorandum of appeal setting out the grounds of appeal, and a statement of facts. The taxpayer must also serve the Commissioner with a copy of the notice of appeal within two days of filing it.

The Commissioner then has 30 days from being served with the appeal to file a statement of facts, the reasons for the contested decision, and all supporting documentation with the Tribunal. The Tribunal sets a hearing date, with at least 14 days’ notice given to both parties, and evidence may be presented orally, by affidavit, or in such other manner as the Tribunal directs.

A critical limitation applies throughout this process: in any appeal to the Tribunal, the High Court, or the Court of Appeal, a taxpayer may rely only on the grounds stated in the original notice of objection, unless the Tribunal or court specifically permits new grounds to be added. This makes it essential to draft the initial objection thoroughly, since a weak or incomplete objection can permanently limit the arguments available on appeal.

Step Four: Appeal to the High Court and Court of Appeal

A party dissatisfied with the Tribunal’s decision may, within 30 days of being notified, appeal to the High Court under the Tax Appeals Tribunal Act. Appeals beyond the Tribunal are restricted to questions of law only, meaning the High Court will not generally re-examine factual findings made by the Tribunal unless those findings disclose a legal error. A further appeal from the High Court to the Court of Appeal follows the same 30-day timeline and the same restriction to questions of law.

Alternative Dispute Resolution

Kenyan tax law also provides for Alternative Dispute Resolution at any stage of a dispute, whether before KRA, the Tribunal, or the courts, under the KRA ADR Framework and consistent with Article 159 of the Constitution. Where a court or the Tribunal permits the parties to pursue settlement, the parties have 90 days to conclude the settlement; if no agreement is reached within that period, the dispute reverts to the body that authorised the ADR process. For commercially sensitive disputes, particularly those involving valuation judgments or technical interpretation issues rather than clear errors of law, ADR can resolve matters faster and with more flexibility than formal litigation.

Common Reasons Taxpayers Lose at the Tribunal

Experience before the Tax Appeals Tribunal shows recurring patterns in unsuccessful cases: missed objection or appeal deadlines, objections that state conclusions without properly articulated grounds, incomplete or disorganised supporting documentation, and a failure to maintain proper accounting records that would allow the taxpayer to reconcile its position against KRA’s figures. It is also worth noting that the burden of proving a tax decision incorrect rests with the taxpayer, not with KRA. The Commissioner is not required to justify the assessment; the taxpayer must affirmatively demonstrate, through evidence and legal argument, why the decision is wrong.

How We Can Help

Clay & Associates Advocates represents clients in tax disputes from the initial notice of objection through to Tax Appeals Tribunal hearings and, where necessary, appeals to the High Court. We also advise on whether a dispute is better suited to formal litigation or to Alternative Dispute Resolution with KRA. If you have received a KRA assessment or objection decision you believe is incorrect, time is critical given the strict statutory deadlines, and you should speak to our litigation and dispute resolution team as early as possible. This often connects with related compliance issues such as outstanding debt recovery matters or digital tax compliance questions under eTIMS, and our team can advise across both fronts where they intersect.

For the governing legislation, see the Tax Procedures Act, 2015 and the Tax Appeals Tribunal Act, 2013 on the Kenya Law website.