KRA Launches Independent Review Systems to Improve Customs Dispute Resolution

The Times Tower housing the KRA offices in Nairobi.
KRA offices in Nairobi.
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Kenya Insights

The Kenya Revenue Authority has announced the rollout of two new systems aimed at improving how custom-related disputes are handled in the country. 

In a statement, the taxman announced the rollout of the Independent Review of Objections (IRO) and the Technical Review Unit (TRU), the two systems set to take effect from August 2025, to ensure that disagreements about customs decisions are looked at fairly and transparently. 

“This rollout, which is aligned with Gazette Notice No.1036 and the provisions of Section 11 of the KRA Act (CAP 469), delegates the responsibility for Customs Dispute Resolution to the Commissioner responsible for Tax Dispute Resolution,” KRA said in a statement. 

Once the new systems are in place, customs officers will no longer be involved in the initial decision-making process in customs-related disputes, as these issues will be handled by a separate unit.

A ship docked at the Port of Mombasa, February 5, 2025.
A ship docked at the Port of Mombasa, February 5, 2025.
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KPA

For example, with the IRO, if a trader disagrees with a decision made by a customs officer, they can appeal the decision or request that an independent body reviews the case, rather than having to accept the original decision.

According to KRA, the changes are based on the East African Community Customs Management Act (EACCMA). According to this Act, if someone feels that a customs decision is unfair, they can request a review of the decision within 30 days.

The new systems will be implemented in phases, starting in August 2025, with the first phase focusing on Post-Clearance Audit (PCA) applications.

This will entails review of import taxes, duties and other charges after goods have been cleared at the port. 

In this case, traders who disagree with the PCA Demand Notices will apply to the IRO for review and get a fair chance to challenge the decision. 

The second phase will kick off in September 2025, with the focus set to shift to other areas such as tariff classification, valuations and exemptions. This phase is crucial since it involves cases where goods are potentially misclassified or misvalued. 

Finally, KRA expects to roll out the third phase by November 2025. During this phase, the rollout will cover all other custom-related matters including issues concerning bonds and guarantees that are required by KRA during the import or export of goods.

Besides ensuring fairness and transparency, the rollout of the IRO and TSU systems are also set to reduce the time it takes to address custom disputes, which could drag on for months under the previous system. 

KRA
Kenya Revenue Authority offices
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KRA