Published: July 2026 | Last Reviewed: July 2026
Author: Victor Mulindi, Advocate of the High Court of Kenya, Khayesi & Khayesi Advocates LLP
Practice Area: General Litigation (Tax Disputes)
Article Type: Practical Legal Guide
Read Time: 11 minutes

How to Challenge a KRA Tax Assessment in Kenya: Objection, Appeal & ADR

Introduction

A KRA Tax Assessment rarely arrives at a convenient time. It may follow a routine compliance check, a full tax audit, or a review of bank statements obtained under the Kenya Revenue Authority’s information-gathering powers. Whatever the trigger, the moment a business receives a Notice of Tax Assessment, a legal clock starts running, and how the business responds in the following days will determine whether it retains the right to challenge the figure at all.

This guide sets out, step by step, what a Kenyan business should do on receipt of a KRA Tax Assessment : how to object, why the process must be followed precisely, what happens if the objection is unsuccessful, and the escalation route through the Tax Appeals Tribunal (TAT), the High Court, and beyond. It also explains the Alternative Dispute Resolution (ADR) option that runs alongside this pipeline. Khayesi & Khayesi Advocates LLP (KNK Advocates) regularly advises businesses and individual taxpayers through each of these stages.

What Is a KRA Tax Assessment?

A tax assessment is the Commissioner’s determination of a taxpayer’s liability under a specific tax law, income tax, VAT, PAYE, withholding tax, excise duty, or stamp duty. Under the Tax Procedures Act, 2015 (Cap. 469B) (“TPA”), assessments take several forms: a self-assessment arising from a taxpayer’s own return (TPA s.28), a default assessment where no return was filed (TPA s.29), an advance assessment, or an amended assessment issued after an audit (TPA s.31).

All of these, together with an objection decision, a refund decision, and a penalty demand, fall within the TPA’s definition of an “appealable decision” or “tax decision”, meaning each of them can be legally challenged through the process below.

Step 1: Verify the KRA Tax Assessment and Calculate the Deadline Immediately

The single most important fact on receipt of a KRA Tax Assessment is the date of receipt, not the date printed on the notice. Under TPA s.51(2), a taxpayer has 30 days from the date of receipt of the assessment to lodge a notice of objection. This is a statutory limitation period, not a guideline. A business should, on the same day the assessment is received:

• Confirm the tax head, the periods covered, and the exact figures assessed (tax, penalty, and interest, stated separately);
• Check whether the assessment was generated and served through iTax;
• Diarise the 30-day objection deadline and, separately, the point at which a professional review is realistically needed to meet it;
• Gather supporting records: returns, ledgers, invoices, bank statements, and any prior correspondence with KRA on the same issue.

A late objection is not automatically fatal. TPA s.51(6) and (7) allow the Commissioner to accept a late objection where the taxpayer was absent from Kenya, was sick, or shows other reasonable cause, and did not unreasonably delay once the obstacle ended. But this is an application for indulgence, not a right, and it should never be the default plan.

Step 2: Lodge a Valid Objection to a KRA Tax Assessment

An objection is only valid if it meets three conditions under TPA s.51:

1. It is lodged through iTax. The High Court has confirmed that objections submitted by physical letter or email, rather than through iTax, do not acquire legal validity and do not start the Commissioner’s response clock (Commissioner of Investigation & Enforcement v Zhao, Income Tax Appeal E010 of 2025, [2025] KEHC 16297 (KLR), High Court, delivered 27 October 2025). A business that emails a “protest letter” to a KRA officer, believing it has objected, may later discover it has not.
2. It states the grounds precisely. A generic objection (“we dispute this assessment”) without specific grounds risks invalidation.
3. The tax not in dispute is paid, or payment arrangements are made. Where an assessment covers several items and only some are contested, the undisputed portion must still be settled.

Where an amended assessment is being objected to, TPA s.51(5) limits the objection to the alterations made in the amendment, not the original assessment as a whole. Businesses that object broadly, without tying each ground to a specific line item, often find KRA (and later the Tribunal) treating parts of the objection as improperly framed.

Step 3: The Commissioner’s Decision on Your KRA Tax Assessment Objection

Once a valid objection is lodged, the Commissioner must issue an objection decision within 60 days from the date of receipt of the valid objection (TPA s.51(11)). The decision must include a statement of findings on the material facts and the reasons for the decision (TPA s.51(10)). If the Commissioner does not decide within 60 days, the objection is deemed allowed by operation of law.

This 60-day rule looks simple but is a frequent battleground. In the Hanqing Zhao case above, the Tribunal and the High Court reached opposite conclusions on when the 60-day clock actually started, because the taxpayer’s initial letter did not count as the valid objection date; only the later iTax submission did. The practical lesson for a business is to keep clear, dated proof of the iTax lodgement (the acknowledgement receipt) as the anchor for every subsequent deadline calculation, rather than relying on covering letters or email trails.

Why Following This Process Precisely Matters

Kenyan tax tribunals and courts treat these timelines as jurisdictional, not procedural technicalities that can be waived for fairness. In Commissioner of Domestic Taxes v Lifecare International Brokers Limited [2020] KEHC 3188 (KLR), the High Court held that failure to file an appeal within time, and without complying with the statutory conditions, is not a mere technicality that can be overlooked, because it goes to the competence of the appeal itself.

The Tax Appeals Tribunal has applied this reasoning to strike out appeals filed late or without the required documents (see, for example, Rural Distributors Enterprises Limited v Commissioner of Legal Services & Board Co-ordination, TAT Appeal No. 203 of 2023, [2024] KETAT 886 (KLR)).

In practice, this means a business with a strong substantive case can still lose entirely on a procedural default, an objection lodged the wrong way, an appeal filed one day late, or documents submitted without leave once time has expired. Procedural discipline is not a formality here; it is the case.

Appealing a KRA Tax Assessment to the Tax Appeals Tribunal

Where the Commissioner disallows the objection in whole or in part, the next forum is the Tax Appeals Tribunal (TAT), a quasi-judicial body established under the Tax Appeals Tribunal Act, 2013 (Cap. 469A) (“TAT Act”). The process, set out in TAT Act s.13 and the Tax Appeals Tribunal (Procedure) Rules, 2015, runs as follows:

• Notice of appeal: in writing, filed with the Tribunal within 30 days of receiving the objection decision, and served on the Commissioner within 2 days of filing.
• Appeal documents: a memorandum of appeal, a statement of facts, and the tax decision itself, filed within 14 days of the notice of appeal. The Commissioner must file a responding statement of facts within 30 days of being served (TAT Act s.15).
• Filing fee: a prescribed fee applies at the point of filing (commonly cited at around KES 20,000; confirm the current figure with the Tribunal registry, as fee schedules are revised).
• Extension: the Tribunal may extend time for filing the appeal documents on application, for reasons similar to those accepted for a late objection.
• Hearing and decision: the Tribunal is intended to hear and determine appeals within 90 days of filing, though this target is often exceeded in practice given caseload. The Tribunal may uphold, vary, or set aside the assessment.

The Tribunal is not a court of first instance for new arguments; parties are generally limited to the grounds stated in the appeal unless the Tribunal orders otherwise. A business preparing a TAT appeal should treat the statement of facts as the document on which the case will largely be won or lost, since it fixes the factual and legal terrain for the hearing.

Appealing a KRA Tax Assessment to the High Court

A party dissatisfied with a TAT decision may appeal to the High Court within 30 days of being notified of the decision, or such further period as the High Court may allow (TAT Act s.32). Unlike the Tribunal, the High Court’s tax jurisdiction on appeal is generally exercised on questions arising from the record before the Tribunal, and appeals are heard in accordance with rules set by the Chief Justice. A further appeal on a point of law lies to the Court of Appeal.

Separately, where a taxpayer considers that KRA’s conduct has violated a constitutional right, for example the right to fair administrative action under Article 47, or the right to a fair hearing under Article 50, a constitutional petition may be filed directly in the High Court. This is a distinct route from the ordinary TAT-to-High-Court appeal chain and should not be used as a substitute for meeting the statutory appeal deadlines.

Resolving a KRA Tax Assessment Through ADR

Kenyan tax law does not require a business to litigate a dispute to its conclusion. Alternative Dispute Resolution (ADR) is expressly available and is anchored in:

• Article 159(2)(c) of the Constitution of Kenya, 2010, which directs courts and tribunals to be guided by alternative forms of dispute resolution;
• TPA s.55, which allows parties to settle a tax dispute out of court or Tribunal;
• TAT Act s.28, which allows parties to apply, at any stage of Tribunal proceedings, to settle the matter outside the Tribunal;
• The Tax Procedures (Settlement of Tax Disputes out of Court or Tribunal) Regulations, 2020; and
• The KRA Alternative Dispute Resolution Framework, launched in 2015 and revised in 2019, which operates through KRA’s Tax Disputes Resolution Division.

ADR under this framework is facilitated mediation, not arbitration; the facilitator has no power to impose an outcome. Either the taxpayer or the Commissioner may initiate it, at the objection stage, during a TAT appeal, or during a court appeal, and it is available for both tax and customs disputes (KRA has, for example, publicly resolved a substantial customs dispute with a private importer through this route). Once admitted, parties are generally expected to conclude settlement discussions within a fixed window (commonly cited as around 90 to 120 days depending on the framework applied; confirm the current period, as it has been the subject of amendment).

A critical point businesses often miss: pursuing ADR does not pause the statutory appeal deadlines. The KRA ADR Framework expressly states that it does not remove a party’s right, or obligation, to file a TAT or court appeal within the time the law allows. In practice, this means many businesses file the TAT appeal to protect their position, and pursue ADR in parallel, rather than waiting on ADR before securing their appeal rights.

Practical Scenario

Consider a Nairobi-based manufacturing company issued with an amended VAT assessment of KES 18 million following a KRA audit. The company’s finance team, understandably alarmed, emails KRA’s audit officer a detailed rebuttal within a week. Six weeks later, KRA issues a demand for the full amount, stating no valid objection was lodged. Because the rebuttal was never filed through iTax, it did not constitute a notice of objection at law, and the 30-day window has since closed.

The company’s only remaining options are a late-objection application (with genuine grounds) or contesting enforcement, both weaker positions than a timely, correctly lodged objection would have been. This is precisely the outcome the Hanqing Zhao decision illustrates, and it is avoidable with prompt, correctly channelled action.

Common Mistakes Businesses Make

• Treating an email or letter to a KRA officer as equivalent to an iTax objection;
• Calculating the 30-day and 60-day periods from the date on the notice rather than the date of actual receipt;
• Objecting in general terms instead of addressing each disputed line item;
• Failing to pay or arrange payment of the undisputed tax portion, which can invalidate the objection;
• Assuming that starting ADR talks suspends the appeal deadline;
• Waiting for legal advice until close to the deadline, leaving no time to assemble supporting records.

KNK Advocates’ Recommendations for a KRA Tax Assessment

On receipt of any KRA assessment, a business should immediately confirm the receipt date, engage tax counsel to review the assessment’s validity and grounds, lodge a properly framed iTax objection within the 30-day window, retain the iTax acknowledgement as primary proof of the filing date, and settle or arrange the undisputed tax portion. Where the objection decision is unfavourable, the same discipline applies to the TAT notice of appeal and the 14-day documents that follow it. ADR should be considered on its merits, not as a reason to relax the appeal timeline.

Conclusion

The Kenyan tax dispute process, objection, Tribunal appeal, High Court appeal, and ADR, gives businesses real and structured avenues to challenge a KRA assessment. But every stage is governed by short, strictly enforced statutory deadlines, and Kenyan courts have consistently held that missing them is a jurisdictional defect, not a technicality.

A business that acts within days of receiving an assessment, rather than weeks, keeps every option, objection, tribunal appeal, court appeal, and ADR, genuinely open. KNK Advocates advises businesses across Kenya on tax assessments, objections, TAT appeals, and ADR applications, and can review an assessment’s validity and deadline position on short notice.

A business that receives a KRA Tax Assessment from the Kenya Revenue Authority (KRA)must lodge a notice of objection on iTax within 30 days, and pay the tax portion not in dispute. If the Commissioner’s objection decision is unfavourable, the taxpayer has 30 days to appeal to the Tax Appeals Tribunal, then a further 30 days to appeal to the High Court. Alternative Dispute Resolution (ADR) with KRA is available in parallel at any stage.

7. FAQ SECTION

What is the deadline to object to a KRA tax assessment?

A taxpayer has 30 days from the date of receipt of the assessment to lodge a notice of objection under section 51(2) of the Tax Procedures Act, 2015. The objection must be lodged through iTax to be legally valid. KNK Advocates recommends calculating this deadline the same day an assessment is received.

Do I have to pay the disputed tax before objecting?

No, but the portion of the assessment that is not in dispute must be paid, or payment arrangements made, for the objection to be validly lodged under section 51 of the Tax Procedures Act. Only the contested amount can remain outstanding pending the objection.

What happens if KRA does not respond to my objection within 60 days?

Where the Commissioner fails to issue an objection decision within 60 days of a validly lodged objection, the objection is deemed allowed by operation of law under section 51(11) of the Tax Procedures Act. The date the 60-day period starts running is calculated from the valid iTax lodgement date, not any earlier correspondence.

Can I object to a KRA assessment by letter or email?

No. Kenyan courts have confirmed that an objection must be lodged through the iTax platform to acquire legal validity; a physical letter or email does not start the Commissioner’s response clock. This was affirmed by the High Court in Commissioner of Investigation & Enforcement v Hanqing Zhao, Income Tax Appeal E010 of 2025.

How much does it cost to appeal to the Tax Appeals Tribunal?

A prescribed filing fee applies when lodging a Tribunal appeal. Fee schedules are revised from time to time, so businesses should confirm the current amount with the Tribunal registry or with KNK Advocates before filing.

Can I go straight to the High Court without going through the Tribunal?

Generally, no. A taxpayer must first exhaust the Tax Appeals Tribunal process before appealing to the High Court under section 32 of the Tax Appeals Tribunal Act, 2013. A separate constitutional petition may be available where a fundamental right, such as fair administrative action, has been violated, but this is not a substitute route for an ordinary tax appeal.

Is ADR a substitute for filing an appeal?

No. Pursuing Alternative Dispute Resolution with KRA does not suspend the statutory deadlines for filing a Tribunal or court appeal. Businesses often file the appeal to protect their position and pursue ADR discussions in parallel, rather than waiting.

What happens if I miss the objection deadline?

A taxpayer may apply for an extension of time under section 51(6) and (7) of the Tax Procedures Act, but this requires showing reasonable cause, such as absence from Kenya or sickness, and that there was no unreasonable delay once the obstacle ended. Kenyan courts treat missed deadlines as going to the competence of the case, not a mere technicality, so this application should never be treated as a routine fallback.

SOURCES / REFERENCES

• Tax Procedures Act, 2015 (Cap. 469B), sections 28, 29, 31, 51, 55: https://new.kenyalaw.org/akn/ke/act/2015/29/eng@2025-07-01
• Tax Appeals Tribunal Act, 2013 (Cap. 469A), sections 13, 15, 28, 32: https://new.kenyalaw.org/akn/ke/act/2013/40/eng@2023-07-01
• Tax Appeals Tribunal (Procedure) Rules, 2015: https://new.kenyalaw.org/akn/ke/act/ln/2015/227/eng@2022-12-31
• Tax Procedures (Settlement of Tax Disputes out of Court or Tribunal) Regulations, 2020 (Legal Notice No. 123 of 2020): http://kenyalaw.org/kl/fileadmin/pdfdownloads/LegalNotices/2020/LN123_2020.pdf
• Kenya Revenue Authority Alternative Dispute Resolution Framework, 2015 (revised 2019): https://www.kra.go.ke/individual/alt-dispute-resolution-adr/learn-about-adr/the-adr-framework
• Constitution of Kenya, 2010, Articles 47, 50, 159(2)(c): https://new.kenyalaw.org/akn/ke/act/2010/constitution/eng@2010-09-03
• Commissioner of Investigation & Enforcement v Zhao (Income Tax Appeal E010 of 2025) [2025] KEHC 16297 (KLR) (Commercial and Tax) (27 October 2025): https://new.kenyalaw.org/akn/ke/judgment/kehc/2025/16297/eng@2025-10-27
• Commissioner of Domestic Taxes v Lifecare International Brokers Limited [2020] KEHC 3188 (KLR): https://new.kenyalaw.org/akn/ke/judgment/kehc/2020/3188/eng@2020-09-18
• Rural Distributors Enterprises Limited v Commissioner of Legal Services & Board Co-ordination (Tax Appeal 203 of 2023) [2024] KETAT 886 (KLR) (28 June 2024): https://new.kenyalaw.org/akn/ke/judgment/ketat/2024/886/eng@2024-06-28

Editorial note: statutory periods referenced in this article (30 days, 60 days, 90/120 days for ADR) reflect the Tax Procedures Act and Tax Appeals Tribunal Act as commonly applied and reported by KRA and practitioner sources as at July 2026. Tax legislation is amended almost every Finance Act cycle; confirm the currently applicable period on Kenya Law (new.kenyalaw.org) before relying on any deadline in a live matter.

8. LEGAL DISCLAIMER

Legal Disclaimer

The content of this article is published by Khayesi & Khayesi Advocates LLP for general informational and educational purposes only. It does not constitute legal advice and must not be relied upon as such.

Reading this article does not create an advocate-client relationship between you and Khayesi & Khayesi Advocates LLP or any of its advocates. The information provided reflects Kenyan law as at the date of publication and may not account for subsequent legislative changes, court decisions, or the specific facts of your situation.

Legal advice is fact-specific. A position that applies generally may not apply to your circumstances. To receive formal legal advice on your matter, you must formally engage Khayesi & Khayesi Advocates LLP by entering into a signed Letter of Engagement, at which point an advocate-client relationship will be established and privileged legal advice can be provided.

To begin the engagement process, contact us at [email protected], call +254 711 472 518, or book a consultation at bit.ly/victorscalendar.

Need Expert Legal Advice in Kenya?

Khayesi & Khayesi Advocates LLP (KNK Advocates) is a full-service law firm based in Nairobi, Kenya, with more than 25 years of combined experience in estate planning and succession.

We Know The Law, We Love The Law.

Whether you are a business, entrepreneur, or individual navigating Kenya’s legal landscape, our team is here to move you forward.

📞 +254 711 472 518

📧 [email protected]

🌐 knkadvocates.co.ke

📅 Book a Free Consultation

Follow us: @knklegal | @knk_legal