In the dynamic and complex world of tax compliance in Kenya, disputes between taxpayers and the Kenya Revenue Authority (KRA) are not uncommon. These disputes can arise from varying interpretations of tax laws, errors in assessments, or differences in documentation. To help resolve such disputes fairly and efficiently, the government has embraced tax arbitration services as a key component of Alternative Dispute Resolution (ADR).
At Junyan and Associates, we specialize in tax arbitration services in Kenya, helping businesses and individuals resolve their tax issues with professionalism, accuracy, and efficiency.
What Is Tax Arbitration?
Tax arbitration is a formal method of resolving tax disputes outside the traditional court system. It involves a neutral third party—known as an arbitrator—who reviews the evidence from both the taxpayer and KRA and then makes a binding or non-binding decision depending on the nature of the agreement.
It is part of the Alternative Dispute Resolution (ADR) Framework in Kenya, which includes methods like mediation and negotiation aimed at reducing the backlog of cases at the Tax Appeals Tribunal and the High Court.
Why Tax Arbitration Is Important in Kenya
With the increasing complexity of tax regulations and growing audit activities by KRA, businesses in Kenya face heightened scrutiny. Tax arbitration offers a constructive, faster, and more cost-effective way to handle disagreements.
Key Benefits of Tax Arbitration:
- Time Efficiency – Tax arbitration typically takes less time than court proceedings.
- Cost Savings – Avoids expensive litigation and prolonged legal battles.
- Confidentiality – Unlike court cases, arbitration sessions are private and not subject to public scrutiny.
- Expert Guidance – Disputes are handled by arbitrators knowledgeable in tax law and accounting.
- Preservation of Relationships – Arbitration promotes a cooperative resolution between taxpayer and KRA.
Common Tax Disputes Resolved Through Arbitration
At Junyan and Associates, we support clients in resolving various types of tax disputes through arbitration, including:
- Disagreements over Value Added Tax (VAT) calculations
- Corporate tax underpayments or overpayments
- Withholding tax and PAYE disputes
- Incorrect customs duty assessments
- Disputes involving penalties, fines, and interest on late payments
How Tax Arbitration Works in Kenya
- Dispute Arises
A tax assessment or penalty is issued by KRA, and the taxpayer disputes it. - Application for ADR
Either party may request the matter to be referred to ADR under the ADR Framework. - Arbitrator Selection
An impartial arbitrator or panel is appointed. This may be jointly agreed upon by both parties. - Hearings and Presentations
Both sides present their case, including evidence, records, and legal arguments. - Decision and Award
The arbitrator issues a decision that is binding (or non-binding, based on agreement). Once accepted, it is enforced by both parties.
The ADR Framework and Tax Arbitration in Kenya
The ADR Framework introduced by the Kenya Revenue Authority plays a crucial role in supporting arbitration. It provides a structured and recognized process through which taxpayers can negotiate settlements or seek impartial resolutions.
This system has made dispute resolution more accessible to Small and Medium Enterprises (SMEs), large corporations, and even individual taxpayers. Arbitration under the ADR framework ensures fairness, clarity, and a simplified pathway to resolving tax conflicts.
Junyan and Associates – Your Tax Arbitration Experts in Kenya
At Junyan and Associates, we are committed to helping clients navigate tax disputes with ease and confidence. Based in Nakuru and serving clients across Kenya, our team brings experience, deep knowledge of tax law, and a proactive approach to dispute resolution.
Here’s how we support our clients through tax arbitration:
1. Initial Case Review
We examine your tax assessment, supporting documents, and KRA correspondence to understand the facts and legal issues involved.
2. Strategic Arbitration Planning
We assess whether arbitration is the best approach for your case. If so, we prepare a solid strategy focused on achieving favorable outcomes.
3. Comprehensive Documentation
From financial records to legal references, we compile all necessary documentation to support your position during arbitration.
4. Expert Representation
We represent you at all stages of the arbitration process—drafting submissions, attending hearings, and arguing your case.
5. Final Resolution Support
Once a decision is reached, we help ensure compliance, tax reconciliation, and documentation updates for future reference.
Industries We Serve
At Junyan and Associates, we understand that tax obligations vary significantly across industries. Our team brings industry-specific knowledge and experience to ensure every business receives relevant, practical, and effective tax arbitration support. Whether you’re running a start-up, an established enterprise, or a nonprofit organization, we’re equipped to help.
1. Retail and Wholesale Businesses
These businesses often face issues related to VAT compliance, transaction-based errors, and cash flow documentation challenges. We assist with accurate recordkeeping, proper tax filing, and dispute resolution related to turnover and VAT claims.
2. Construction and Real Estate Companies
The construction and real estate industry is often subject to high-value tax disputes involving capital gains tax, withholding tax, and VAT on property sales. We help companies maintain clean ledgers, respond to KRA audits, and defend disputed assessments effectively.
3. Hospitality (Hotels, Restaurants, Airbnb)
Tax disputes in the hospitality industry often relate to service tax, income declaration, and VAT returns. Our firm offers tax audit preparedness, representation during assessments, and support with disputed tax liabilities stemming from seasonal variations and irregular bookings.
4. Health Care Institutions (Private Clinics and Hospitals)
Healthcare providers are frequently challenged with reconciling exempt and taxable services. We help streamline your financial records, ensure accurate declaration of professional fees, and defend disputes involving withholding taxes, staff benefits, or asset depreciation.
5. NGOs and Nonprofit Organizations
While often tax-exempt, NGOs can still fall into disputes due to grants, donor-funded projects, or incorrect classifications. We guide NGOs in maintaining transparent records and handling tax compliance around VAT, payroll, and income-generating activities.
6. Import and Export Businesses
These businesses face frequent scrutiny from customs and excise authorities. Tax disputes typically involve misclassification of goods, duty underpayment, and documentation mismatches. We help resolve issues related to customs valuation, import duties, and excise tax with speed and precision.
7. Technology and Online Businesses
Digital businesses and tech startups face emerging tax challenges, especially with KRA’s growing focus on taxing online income and digital services. We help your business navigate new tax frameworks, avoid compliance issues, and manage audits or disputes related to e-commerce income.
8. Professional Services (Law Firms, Accountants, Consultants)
For firms offering professional services, disputes can arise from fee income underreporting or incorrect VAT application. We assist with accurate invoicing, client payment tracking, and tax dispute defense related to service-based earnings.
Stay Compliant, Avoid Future Disputes
At Junyan and Associates, we don’t just focus on resolving tax disputes—we take a proactive approach to help you avoid them entirely. Our tax advisory and compliance services are tailored to your industry and business size, giving you peace of mind and full compliance assurance.
Here’s how we help you stay compliant:
Timely Filing of Tax Returns
Avoid unnecessary penalties and interest charges by staying up to date with PAYE, VAT, corporate income tax, and turnover tax returns.
Monthly Bookkeeping and Reconciliation
We keep your books organized, up-to-date, and aligned with KRA’s reporting standards to avoid discrepancies during audits.
Regular Tax Compliance Reviews
Through periodic reviews, we identify gaps, risks, and opportunities to strengthen your tax position before a KRA query or audit happens.
Audit Support and Representation
If KRA launches an investigation or audit, we’re ready to represent you, respond to queries, and provide documentation that validates your tax filings.
KRA Services
We provide full support for essential tax services including:
- KRA PIN registration and updates
- Tax Compliance Certificate (TCC) processing
- VAT registration and deregistration
- Tax obligation additions and amendments
Contact Junyan and Associates Today
Whether you’re facing an active tax dispute or seeking to strengthen your tax compliance systems, Junyan and Associates is your trusted partner. Our approach is personalized, strategic, and results-driven. We pride ourselves on integrity, transparency, and deep understanding of Kenya’s tax environment.
Call us: +254 724 786089
Visit us: Sansora Building, Nakuru, Second Floor Rm 03.
Tax Arbitration Services in Kenya
What is tax arbitration and how does it work in Kenya?
Tax arbitration is an alternative dispute resolution (ADR) method where an impartial third party helps resolve tax disputes between a taxpayer and the Kenya Revenue Authority (KRA). It is less formal than litigation and aims to settle disputes efficiently and amicably. At Junyan and Associates, we represent clients through the entire arbitration process—from case analysis to final resolution.
Who can use tax arbitration services in Kenya?
Any individual, business, or organization involved in a tax dispute with KRA—whether related to VAT, PAYE, Corporate Tax, or Customs duties—can opt for tax arbitration. It’s especially suitable for cases where the taxpayer seeks a faster, cost-effective, and confidential resolution without going to court.
What types of tax issues can be resolved through arbitration?
Tax arbitration can resolve issues such as incorrect tax assessments, VAT refund delays, income tax discrepancies, customs valuation disagreements, and more. Junyan and Associates helps clients determine if their dispute qualifies for arbitration and guides them through the resolution process.
How long does the tax arbitration process take?
While timelines vary depending on case complexity, most arbitration cases in Kenya are resolved within 60 to 90 days. This is significantly faster than litigation, which can take years. Our team ensures all documentation is submitted promptly to avoid delays and keep your case on track.
Why should I choose Junyan and Associates for tax arbitration services?
At Junyan and Associates, we have in-depth knowledge of Kenya’s tax laws and vast experience dealing with KRA. We provide end-to-end support—from evaluating your dispute and preparing evidence to representing you during arbitration sessions and ensuring compliance post-resolution. Our goal is to resolve your tax issues efficiently, professionally, and discreetly.