The Kenya Revenue Authority (KRA) will, from August 1, introduce a new independent unit to handle customs-related tax disputes, including objections to Post Clearance Audit (PCA) notices.
The move is aimed at enhancing fairness and transparency in the resolution of disputes between importers and the taxman.
Customs and Border Control disputes - including issues like tariff valuations, exemptions, and bonds - will now be reviewed by the Independent Review of Objections (IRO) and Technical Review Unit (TRU).
According to KRA, this new approach is in line with Gazette Notice No. 1036 and the East African Community Customs Management Act (EACCMA), 2004. Sections 229 and 230 of the Act allow any person directly affected by customs decisions to apply for a review within 30 days of the decision.
Section 229 of the Act specifically allows a person to lodge an application for review in writing, stating the grounds for the objection. KRA says this provision is designed to ensure a transparent appeal process aligned with best international practices.
“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 through an independent unit to ensure an arm’s length and best practices in managing disputes,” read part of a statement issued by KRA.
Beginning August 1, the phased implementation of the review framework will start with PCA-related disputes. In September, the unit will begin reviewing cases related to tariffs, valuation, and exemptions. From November, it will handle all remaining customs matters, including bond disputes.
Taxpayers who wish to file objections to PCA Demand Notices must submit their applications to the Office of the Independent Review of Objections.
The applications may be emailed to LSBCIROStaff@kra.go.ke or hand-delivered to the IRO offices located on the 7th Floor of Ushuru Pension Towers, Elgon Road, Upper Hill, Nairobi.
“From August 1, 2025, all Post Clearance Audit applications must be filed with the Independent Review of Objections office under the Commissioner of Legal and Board Services,” KRA clarified. “This ensures the process remains independent, fair, and accessible to affected taxpayers.”
The authority also emphasised that these reforms mark a major step toward professionalising the tax dispute process, particularly in the customs space, where complaints of unfair assessments have often led to drawn-out conflicts between importers and officials.
By removing the review function from the operational arm of Customs and placing it under a legal oversight unit, KRA aims to rebuild trust among stakeholders and foster a more predictable and investor-friendly business environment.
