KRA Tax Disputes Resolution and Alternative Dispute Resolution (ADR) 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 tribunals, or via Alternative Dispute Resolution (ADR).

At Hilltech Consultants, 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.

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.

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, and supporting arguments.

Additionally, the taxpayer must pay or make arrangements for the undisputed portion of the tax before filing. If valid, KRA must issue an Objection Decision within 60 days, otherwise, the objection is automatically allowed by law.

Appeals to the Tax Appeals Tribunal (TAT)

If dissatisfied with the objection decision, a taxpayer may appeal to the Tax Appeals Tribunal (TAT) within 30 days. The TAT must hear and determine the appeal within 90 days of filing. Parties may request to settle disputes out of the Tribunal through ADR, in which case, the time spent on negotiation is excluded from the statutory 90 days.

Alternative Dispute Resolution (ADR) Under KRA Framework

ADR has become one of the most effective and preferred methods of resolving tax disputes in Kenya. Governed by Article 159 of the Constitution, it involves a written request, the appointment of a neutral facilitator from KRA's ADR Unit, and the signing of an amicable Settlement Agreement. It is flexible, faster, and reduces unnecessary litigation backlogs.

Why Choose Hilltech Consultants?

Our experienced team of authorized KRA tax agents, ADR facilitators, and financial compliance professionals ensures your case is handled strategically. We prepare robust objection and appeal documentation under the Tax Procedures Act, delivering cost and time efficiency to reduce unwanted penalties and interest accumulation.