Tax Lawyer in Kenya —
Planning · KRA Disputes ·
Investor Advisory

Yes. If KRA issues an objection decision confirming or adjusting the assessment and you disagree, you have 30 days to appeal to the Tax Appeals Tribunal (TAT). If KRA fails to respond to your objection within 60 days, the objection is deemed to have been allowed. We handle the full appeals process — preparing detailed grounds of appeal, legal submissions and witness statements for TAT hearings. If necessary, we escalate further to the High Court on points of law.

An agency notice is a debt collection tool used by KRA under Section 42 of the Tax Procedures Act. KRA appoints a third party — typically your bank, tenant or debtor — as an agent to collect the tax debt owed. The appointed agent must remit the funds directly to KRA. Agency notices can freeze your bank accounts and severely disrupt operations. We challenge wrongful or premature agency notices, negotiate with KRA for their withdrawal, and file applications at the TAT or High Court where KRA has acted outside the law.

Foreign companies operating in Kenya through a permanent establishment (PE) are taxed at 37.5% on profits attributable to the PE. Non-resident companies without a PE face withholding tax on Kenyan-source income — 15% on dividends, 15% on interest, and 20% on management fees, royalties and consultancy fees (rates may be reduced by applicable Double Taxation Agreements). Capital gains tax of 15% applies to property and share disposals. We advise foreign investors on the optimal entry structure, DTA benefits, withholding tax management and profit repatriation strategies to minimise their effective Kenyan tax rate.

Kenya's transfer pricing rules require all transactions between related parties — whether cross-border or domestic — to be conducted at arm's length prices. The Income Tax (Transfer Pricing) Rules require companies to maintain contemporaneous transfer pricing documentation including a master file and local file. KRA actively audits transfer pricing and can make significant adjustments where pricing is not demonstrably at arm's length. We prepare transfer pricing policies, documentation and benchmarking analyses, and represent clients during KRA transfer pricing audits.

Tax-efficient structuring depends on the transaction type. For acquisitions, the choice between a share purchase and an asset purchase has materially different capital gains tax, stamp duty and VAT consequences. For cross-border payments, structuring through jurisdictions with favourable DTAs can reduce withholding tax. For business restructurings, certain transfers between group companies qualify for tax reliefs under the Income Tax Act. We provide pre-transaction tax structuring opinions that quantify the tax cost of each option — so you choose the most efficient structure before committing.