Few letters unsettle a business like a notice of assessment from the Kenya Revenue Authority. The instinct is to dispute, and Kenyan tax law provides a defined path for doing so , objection, appeal, and increasingly, alternative dispute resolution. Used well, ADR resolves disagreements with KRA on the record, in a structured setting, without conceding the taxpayer’s position.
How does a tax dispute with KRA usually begin?
A dispute typically starts with an assessment , a self-assessment the Commissioner objects to, or an additional assessment raised after an audit. The taxpayer objects within the time allowed under the Tax Procedures Act 2015, published on Kenya Law, stating grounds and supplying supporting documents. If the objection is disallowed, the taxpayer may appeal to the Tax Appeals Tribunal. ADR enters as an alternative to that appellate track, chosen by the taxpayer and run with KRA’s participation.
What does the KRA ADR process involve?
- A taxpayer application to resolve the disputed issues through ADR in place of, or pending, an appeal
- Agreement on the issues in dispute, bounding and documenting the discussion
- Sessions in which the taxpayer and the Commissioner’s representatives examine the figures, facilitated by an agreed chair
- A recorded outcome , agreed issues are settled and the record reflects what remains in dispute, if anything
- Implementation through the ordinary machinery, with any residual dispute continuing on appeal
The Kenya Revenue Authority publishes guidance on the ADR framework, and current timetables and documentation requirements should be checked before an application is made.
When does ADR suit a tax dispute , and when does it not?
ADR works well where the disagreement turns on facts and figures , turnover, deductions, valuations, documentation of transactions , and where a negotiated outcome preserves a workable relationship with the revenue authority. Questions of pure law are sometimes better suited to formal adjudication, where a reasoned decision can guide future years.
How do you prepare for the sessions?
As you would for a hearing: reconciled records, computations answering the assessment line by line, and a delegation with authority to agree within defined limits. Our dispute resolution practice advises on the ADR choice and representation, and our governance and advisory work helps businesses build the documentation that prevents the next assessment surprise.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.