Kenya Revenue Authority unveils independent customs dispute system to boost transparency

Kenyans will now be able to lodge complaints over customs tax demands directly following the rollout of an independent review system by the Kenya Revenue Authority (KRA) aimed at promoting fairness in resolving disputes.

The system, known as the Independent Review of Objections (IRO), will handle appeals separately from the Customs Department to ensure neutrality and transparency.

In a notice on Thursday, KRA said beginning August 1, 2025, taxpayers disputing Post Clearance Audit (PCA) demand notices will be required to submit their objections to the IRO office under the Commissioner of Legal and Board Services, either by email or hand delivery.

The rollout will be implemented in three phases, extending to tariff, valuation, exemptions, bonds, and all other customs-related matters by November 2025.

The changes are being carried out in line with Gazette Notice No. 1036, published on February 1, 2019, under Vol. CXXI No. 14 of the Kenya Gazette.

It follows a decision by the Commissioner General to delegate the customs dispute resolution mechanism, as outlined under Section 11 of the KRA Act, CAP 469, to the Commissioner responsible for Tax Dispute Resolution.

According to the notice, this decision affects Sections 229 and 230 of the East African Community Customs Management Act (EACCMA), 2004, which provide a legal basis for taxpayers to challenge customs decisions.

Fairness and efficiency

Through these sections, the Act “seeks to advance fairness and efficiency in Customs processes by allowing for the appeal and review of decisions made by the Commissioner of Customs by an independent unit to ensure an arm’s length and the best practice in managing disputes,” the Authority said.

Section 229 of the Act allows a person who is directly affected by a customs decision or omission to lodge a written application for review within 30 days. The application must clearly state the grounds of objection.

KRA said the transfer of customs-related dispute resolution to the Tax Dispute Resolution Division under the Legal and Board Services Department will be done in stages.

The first phase, beginning in August 2025, will cover Post Clearance Audit (PCA) applications. This will be followed in September by the second phase, which will handle disputes related to tariff classification, customs valuation, and exemptions.

The final phase, expected to begin in November 2025, will extend the independent review process to cover bonds and all remaining customs matters.

“Consequently, effective 1st August, 2025, be notified that ALL Post Clearance Audit (PCA) Applications for the review of decisions or omissions made by the Commissioner in issuing a PCA Demand Notice(s), should be lodged with the Office of Independent Review of Objections (IRO) under the Commissioner of Legal and Board Services,” KRA said.

Taxpayers can submit their applications by email to [email protected] or hand-deliver them to the IRO offices located on the 7th Floor, Ushuru Pension Towers, Elgon Road, Upper Hill, Nairobi

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