Tax Arbitration Services in Kenya

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.

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

1. Dispute Arises
   A tax assessment or penalty is issued by KRA, and the taxpayer disputes it.
2. Application for ADR
   Either party may request the matter to be referred to ADR under the ADR Framework.
3. Arbitrator Selection
   An impartial arbitrator or panel is appointed. This may be jointly agreed upon by both parties.
4. Hearings and Presentations
   Both sides present their case, including evidence, records, and legal arguments.
5. 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.

What is a tax dispute resolution?

Tax dispute resolution is the formal or informal process used to settle disagreements between a taxpayer and a tax authority (in Kenya, the Kenya Revenue Authority – KRA) regarding how much tax is owed, how it is calculated, or whether a tax law was correctly applied.

When Does a Tax Dispute Arise?

A tax dispute typically arises when:

• A taxpayer disagrees with an assessment or audit outcome issued by KRA.
• There is a difference in interpretation of tax laws (e.g. VAT, income tax).
• KRA imposes penalties or interest that the taxpayer believes are unjustified.
• The taxpayer feels their rights were violated during tax administration.

 Example Scenario

A company is audited and KRA assesses it for KES 10 million in unpaid taxes. The company believes some expenses were wrongly disallowed. It can:

1. Object to the assessment within 30 days.
2. If unsatisfied, appeal to the Tax Appeals Tribunal.
3. Seek ADR at any stage for settlement.
4. Further appeal to High Court and above if needed.

Key principles and regulation/act on tax dispute resolution in Kenya

Out of court settlement in Kenya particularly in the context of tax dispute, refers to the process where a tax payer and the Kenya revenue authority (KRA) solves a tax disagreement without engagement with the tax appeal tribunal (tribunal court) for a tribunal hearing. This is primarily facilitated through alternative dispute resolution (ADR)

Resolve Tax Disputes Swiftly & Smartly – Choose Out-of-Court Settlement Through ADR in Kenya. In the evolving landscape of tax compliance, businesses and individuals increasingly seek efficient, cost-effective ways to handle disputes with the Kenya Revenue Authority (KRA). Out-of-court settlement—particularly through Alternative Dispute Resolution (ADR)—has emerged as a powerful solution.

What Is ADR in Tax Disputes?

ADR is a structured process where a taxpayer and KRA resolve a tax disagreement without escalating it to the Tax Appeals Tribunal. It offers a collaborative, flexible, and less adversarial alternative to formal litigation.

Using ADR, a taxpayer files an objection or appeal and then engages in a guided negotiation process facilitated by either a KRA-trained officer or an independent tax expert. Once consensus is reached, a binding agreement is signed—officially resolving the issue.

 Why Settle Tax Disputes Through ADR?

• Time-Saving – Avoid prolonged court battles and reach a resolution faster.
• Cost-Effective – Save on legal fees, administrative charges, and opportunity costs.
• Flexible – Solutions are tailored to your unique tax situation.
• Confidential – Maintain privacy; sensitive tax data stays between you and your facilitator.

Who’s Involved in ADR?

• The Taxpayer – You, the individual or business involved.
• The Commissioner – A representative from KRA.
• The Facilitator – A neutral, well-trained tax resolution expert guiding the process.

Why It Matters

Whether you’re a business facing a complex assessment or an individual handling an objection, ADR offers a smarter path to resolution—empowering you to stay compliant while protecting your time, finances, and reputation.

 Ready to Resolve Your Tax Dispute the Smarter Way?

Don’t let a tax disagreement derail your operations. Explore the benefits of Alternative Dispute Resolution today. Let’s help you settle quickly, fairly, and discreetly—without ever stepping into a courtroom.

Junyan & Associates – Your Trusted Tax Dispute Resolution Partner, we specialize in helping individuals and businesses in Kenya resolve tax disputes quickly, discreetly, and cost-effectively—without going to court. Our expertise in Alternative Dispute Resolution (ADR) gives you a powerful advantage when dealing with the Kenya Revenue Authority (KRA).

Why Choose Junyan & Associates for ADR?

Proven Expertise
Our team includes seasoned tax consultants and ADR facilitators who understand the inner workings of KRA’s dispute process and how to negotiate favorable outcomes.

Personalized Support
Every tax issue is unique. We offer tailor-made strategies—from preparing objections and appeals to representing you in ADR sessions with KRA officers or independent experts.

End-to-End Guidance
we walk with you through the entire ADR journey: documentation, negotiations, compliance, and final agreement signing.

What We Help You Achieve

• Avoid costly court battles
• Resolve disputes faster
• Keep your tax records and reputation protected
• Negotiate directly with KRA for fair outcomes

Whether it’s a VAT dispute, corporate tax assessment, or individual income tax issue—we’re your shield and strategy. The ADR Process Made Easy with Junyan & Associates.

Tax procedure act in Kenya

The Tax Procedures Act (TPA), enacted in 2015, is a landmark piece of legislation designed to streamline, standardize, and simplify how tax laws are administered and enforced across Kenya.

Rather than having scattered procedures under different tax laws (e.g., VAT, Income Tax, Excise), the TPA consolidates tax processes into one unified legal framework—making it easier for both taxpayers and tax administrators to operate within a predictable, fair, and efficient system.

Core Purposes of the Tax Procedures Act

1. Protect Taxpayer Rights and Obligations
   The TPA ensures taxpayers are treated fairly and transparently, with access to clear guidelines on their rights, responsibilities, and available remedies.
2.  Standardize Tax Processes
   whether it’s VAT, income tax, or excise duties, the TPA brings uniformity in procedures—covering assessments, filings, audits, payments, and objections.
3.  Promote Efficient Tax Administration
   the law strengthens the Kenya Revenue Authority’s ability to enforce tax laws while reducing bureaucracy and overlap—creating a smoother experience for all parties involved.

Navigating the Tax Procedures Act (TPA), 2015 – Made Simple and Smarter at Junyan & Associates, we help you understand, comply with, and leverage the TPA to protect your business and personal finances from risk, penalties, and unnecessary legal trouble.

Why the TPA Matters to You

Whether you’re an SME, corporate taxpayer, or individual, the TPA outlines:

• How tax obligations are calculated
• Your rights during audits or disputes
• How to file objections or request clarifications
• Penalties, interest, and enforcement mechanisms

But interpreting and applying the law correctly takes expertise—and that’s where we come in.

3. Tax dispute litigation in Kenya

In Kenya this is the formal legal process a taxpayer follows when challenging the Kenya revenue authority KRA decision after an alternative resolution mechanism have been exhausted.

Three Key Stages of Tax Dispute Litigation in Kenya

1. Filing a Notice of Objection with KRA

If you disagree with a tax assessment, penalty, or enforcement notice from KRA. Act within 30 days of receiving the decision. File a Notice of Objection with detailed grounds and all supporting documentation. Pay any undisputed amount alongside your objection. This is your first formal step toward challenging the assessment legally.

 2. Appeal to the Tax Appeals Tribunal (TAT)

If KRA rejects your objection or issues an unsatisfactory decision, the next level is the Tax Appeals Tribunal File your appeal within 30 days of receiving KRA’s objection decision. Deposit 50% of the disputed tax amount or apply for a waiver. Appear in person or be represented by a qualified tax consultant.

3. Appeal to the High Court (Point of Law Only)

Still unsatisfied after the Tribunal’s ruling? You may escalate the case to the High Court, but only on a point of law—not on factual disagreements.

This stage demands strong legal argumentation and deep familiarity with tax legislation and court procedures.

Appeal to the tax appeal tribunal TAT –if not satisfied with the KRA objection decision the taxpayer may file an appeal within the TAT at a period of 30 days. The requirements here the following party should deposit a 50% of the disputed amount or seek a waiver. On the hand the following party may appear in person or get a tax consultancy personnel to represent them e.g. Junyan associates which deals with tax/ financial consultancy might be the best option for a representation of the party’s tax dispute at tax appeal tribunal.

Appeal on the high court on this point of law the party might not get full satisfaction from the tax appeal tribunal (TAT) tribunal court, hence they opt to resolve it on the high court level.

Challenging KRA’s Decision? Let Junyan & Associates Fight for You.

When the Kenya Revenue Authority (KRA) issues a tax assessment or penalty you don’t agree with—and negotiation has failed—litigation is your next move.
At Junyan & Associates, we’re here to make sure you don’t face that legal journey alone.

We’re Your Tax Dispute Litigators – At Every Step from filing an objection to appearing at the Tax Appeals Tribunal (TAT) and escalating to the High Court, we handle it all:

Why You Need a Tax Consultancy Firm for Tax Dispute Resolution

When facing a tax dispute with the Kenya Revenue Authority (KRA), every move counts. From objection filing to tribunal appearances, the process can be complex, time-bound, and overwhelming. That’s why having a professional tax consultancy firm by your side isn’t a luxury—it’s a necessity.

 Here’s Why Representation Matters

 1. Expert Knowledge of Tax Law & Procedures

Tax dispute resolution involves understanding the Tax Procedures Act, KRA protocols, and case law precedents. A qualified consultancy firm knows:

• How to build strong objections
• What documentation is required
• Which arguments are most likely to succeed

 2. Timely & Accurate Filing

Tax dispute processes are governed by strict deadlines and legal formats. A consultancy ensures:

• Objections are filed within 30 days
• All supporting evidence is properly structured
• Applications to the Tax Appeals Tribunal are done correctly

 3. Professional Negotiation & Representation

Whether you’re in an ADR meeting or before the Tax Appeals Tribunal, how you present your case matters. Tax consultants:

• Negotiate effectively with KRA officers
• Represent you professionally at the tribunal
• Increase the chances of a favorable outcome

 4. Minimize Risk & Financial Exposure

Mistakes in self-representation can result in:

• Rejection of objections
• Escalation to court
• Penalties, interest, and reputation damage

A tax consultancy helps you mitigate risk, reduce costs, and find resolution faster. Junyan & Associates – Your Tax Dispute Partner we don’t just understand the law—we master the strategy behind it.
We provide end-to-end support in:

• Objection filing
• ADR facilitation
• TAT representation
• High Court referrals (point of law)

How to hire a tax audit /consultancy firm to help solve a tax dispute and represent fully.

Hiring a tax consultant in Kenya is a critical decision for any business. Here are five steps to guide you through the process:

1. Identify Your Tax Needs: Determine the specific tax challenges your business is facing, whether it’s corporate tax, VAT, or transfer pricing.
2. Research Qualified Firms: Look for reputable tax consultancy firms like Junyan and Associates that have experience in your industry and a proven track record.
3. Request a Consultation: Contact the firm for an initial consultation to discuss your business needs and understand their approach to tax advisory.
4. Assess Their Expertise: Evaluate the firm’s expertise, especially in areas such as corporate tax, international tax, and compliance.
5. Review Pricing and Services: Ensure that the services offered align with your budget and requirements before making your decision.

Tax dispute is a matter to get to overcome by getting yourself an efficient personnel member who will work out all the accounted tax issues and fully provide a legal frame work where both the taxpayer and the KRA can be able to navigate a tax dispute in a more efficient and amicable way. At Junyan associate we have the legal personnel to help the tax payer get to get the affordable assistance toward tax disputes.

For more detailed tax/ financial advice or representation, please contact our firm.

Don’t Face KRA Alone. Let the Experts Handle It.

If you’re dealing with a tax dispute, make your first smart decision:
Get expert representation today.

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