20th May 2026
Can tax objection decision issued by Kenya Revenue Authority (KRA) to a taxpayer beyond the statutory timeline be valid? A recent decision from the High Court in a case in which we acted for the taxpayer, (the “Client”), a company that provides research and project development insights, has reaffirmed the importance of strict compliance with statutory timelines in tax disputes. The Court dismissed the appeal by KRA and held that a failure by KRA to issue an objection decision within the mandatory statutory 60-day window as prescribed under the Tax Procedures Act, Cap 468B, the objection lodged is deemed to be allowed by operation of law. This decision further underscores that the mandatory 60-day period within which KRA should issue an Objection Decision is not a mere procedural technicality that can be scorned but is a statutory edict to be strictly adhered to.
The Appeal
The genesis of this dispute stems from KRA issuing additional assessments against our Client for income years 2015 and 2017. The Client filed its objections on 26th July 2021 and 27th September 2021 within the prescribed timelines. Accordingly, the 60-day statutory timeline prescribed under the Tax Procedures Act for KRA to issue Objection Decisions expired on 28th September 2021 and 28th November 2021 respectively. However, KRA did not issue any decision with respect to the 2015 assessment and only issued an Objection Decision for the 2017 assessment on 3 May 2024, over three (3) years late. The Tax Appeals Tribunal set aside the Objection Decision as it was time barred, aggrieved by the Tribunal decision, KRA appealed to the High Court.
KRA argued that the Objection filed by the Client was not valid and consequently, KRA could not have issued an objection decision premised on an invalid objection. Accordingly, KRA was not mandated to adhere to the 60-day statutory timeline to issue an objection decision.
We argued that section 51(11) of the Tax Procedures Act is couched in mandatory terms and therefore, KRA was statutorily mandated to issue an objection decision within the constrains of that timeline, failure to which the objection by our Client was deemed allowed by the operation of the law.
The Court’s Determination
In issuing its determination, the Court determined that section 51(11) as worded is mandatory and any alleged invalidity was immaterial to the timelines set therein.
The Court further held that a statutory timeline couched in peremptory terms is not a procedural technicality and thus, KRA cannot rely on Article 159(2)(d) to override express statutory provisions. Consequently, KRA cannot be selective with constitutional safeguards to excuse its own non-compliance with statutory timelines anchored in law.
Lastly, the Court in dismissing the appeal by KRA affirmed that collection of taxes should adhere to the law, be efficacious and accountable and that the action of KRA issuing an Objection Decision three (3) years after the filing of an Objection violated the law. The Court further found that the reasons advanced for the delay were entirely within KRA’s control and the Tribunal was not at fault for enforcing the law.
The Significance of This Judgment
For taxpayers and tax practitioners, this decision from the High Court provides clarity on the gravitas assigned to statutory timelines as provided by the law in tax disputes. The 60-day timeline prescribed for the delivery of an Objection Decision by KRA is absolute and once the statutory timeline lapses, the objection is deemed allowed by law. Therefore, an Objection Decision issued by KRA out of time cannot revive an objection that has been deemed allowed by operation of the law. The decision further reinforces that KRA cannot rely on the argument of procedural technicality to justify its non-compliance with statutory timelines. Importantly, even where KRA considers a taxpayer’s an objection to be invalid, it nonetheless remains under a statutory obligation to issue an Objection Decision, notwithstanding the alleged invalidity of the objection.
About Oraro & Company Advocates
Founded forty-eight (48) years ago, Oraro & Company Advocates is a full-service, market-leading African law firm, with a strong emphasis on dispute resolution and corporate & commercial law. The firm is renowned for its deep-rooted client relationships, high-quality legal services, and a partner-led approach that combines local expertise with global perspectives. Consistently ranked by prestigious legal directories such as Chambers Global, IFLR1000, Legal 500, and ITR World Tax, Oraro & Company Advocates remains at the forefront of legal excellence in Kenya.
