How to Respond to
a KRA Tax Assessment

What is a Tax Assessment?

A tax assessment is KRA's formal determination of the amount of tax you owe. It may arise after an audit, a desk review, data matching with third parties, or a failure to file returns. Assessments may be amended (adjusting a previously filed return) or estimated (raised where no return was filed and KRA has estimated your liability based on available information).

Step 1 — Read the Assessment Carefully

Before doing anything else, review the assessment notice in full. Identify the tax head involved (Income Tax, VAT, PAYE, WHT), the period under review, the basis of the assessment, and the total amount claimed including penalties and interest. This determines your objection strategy.

Step 2 — Engage a Tax Advisor Immediately

Time is critical. A qualified tax advisor can assess whether the assessment is legally and factually correct, identify grounds for objection, gather supporting documentation, and draft a compelling objection notice — all within the 30-day window.

Step 3 — File Your Objection on iTax

Objections must be filed through the KRA iTax portal. Your objection should:

• Clearly state the grounds of objection with supporting legal and factual arguments
• Attach all relevant supporting documents (returns, ledgers, bank statements, contracts)
• Reference the specific assessment number and period
• Where required, be accompanied by payment or security for the undisputed portion of tax

Step 4 — The Objection Decision

KRA has 60 days to make a decision on your objection. They may allow the objection in full, partially allow it, or disallow it entirely. If disallowed or partially allowed, you have two further options:

Option A: Apply for Alternative Dispute Resolution (ADR)

Kenya's tax legislation provides for an ADR process where a neutral facilitator helps both parties reach a negotiated settlement. ADR is faster and less costly than a formal appeal and is often the preferred route for commercial disputes.

Option B: Appeal to the Tax Appeals Tribunal (TAT)

If ADR does not resolve the matter, you may appeal to the Tax Appeals Tribunal within 30 days of the objection decision. The TAT is an independent quasi-judicial body that hears tax disputes. Further appeal lies to the High Court on points of law.

Key Principles for a Strong Objection

• Never ignore a KRA assessment — silence is treated as acceptance
• Focus on factual accuracy first: what did you actually earn, spend or transact?
• Legal arguments are secondary to solid documentation
• Maintain a professional tone — adversarial objections rarely help outcomes
• Consider whether a settlement offer may be more cost-effective than full litigation

At Noventra, our tax dispute resolution team has extensive experience navigating KRA assessments, objections, ADR processes and Tribunal proceedings. We analyse every assessment for merit and advise you on the most commercially sound path forward.