Dealing with a Kenya Revenue Authority (KRA) tax assessment can feel intimidating, especially if you receive a notice you weren’t expecting. However, understanding what a tax assessment means and how to respond properly can help you resolve the issue efficiently and avoid unnecessary penalties.

What Is a KRA Tax Assessment?

A tax assessment is an official notice from the Kenya Revenue Authority indicating that they have reviewed your tax filings and determined that you owe additional taxes, penalties, or interest.

Assessments can be self-assessments (declared by the taxpayer) or additional assessments (raised by KRA if discrepancies are found).

Common reasons for a tax assessment include:

Late filing or non-filing of returns

Discrepancies between your declared income and third-party information

Incorrect tax computations

Audit findings from KRA

Step 1: Review the Assessment Notice

When you receive a KRA assessment (usually via your iTax account or email), read it carefully.

Check:

The type of tax involved (e.g., PAYE, VAT, Income Tax)

The assessment period

The amount due

The reason for the assessment

If anything seems unclear, download the detailed computation from your iTax portal to understand how KRA arrived at the figures.

Step 2: Verify the Accuracy of the Assessment

Before taking any action, confirm whether the assessment is valid.

Ask yourself:

Did you file the relevant tax returns for that period?

Were there any errors in your previous filings?

Does the income or expense data match your business records?

If you believe KRA made an error, gather all supporting documents such as:

Filed returns and acknowledgments

Payment receipts

Invoices, bank statements, or payroll records

Step 3: Decide Whether to Accept or Object

Once you have verified the details, you can either accept or object to the assessment.

Accepting the Assessment

If the assessment is accurate, log into your iTax account and generate a payment slip for the assessed amount.

You can then make the payment through:

Mobile money (M-Pesa Paybill 572572)

Bank transfer or deposit

Authorized payment agents

Make sure to pay before the due date to avoid accruing penalties or interest.

Objecting to the Assessment

If you disagree with the assessment, you have 30 days from the date of notification to lodge an objection.

To object:

Log into your iTax portal

Navigate to Objections and Appeals

Fill in the Notice of Objection Form (ITAX FORM A/39)

Attach all relevant supporting documents

KRA will review your objection and respond within 60 days. If they fail to do so, the objection is deemed allowed by law.

Step 4: Follow Up and Communicate Professionally

Stay proactive—monitor your iTax messages and respond to any requests for clarification from KRA.

If needed, you can visit a KRA Tax Service Office or contact their Contact Centre (0711 099 999) for guidance.

Keep a written record of all correspondence and acknowledgments for your own reference.

Step 5: Seek Professional Assistance

If your assessment is complex or involves large sums, it’s wise to seek help from a qualified tax consultant or accountant.

A professional can:

Review your financial statements

Prepare proper documentation

Represent you in discussions or appeals with KRA

Final Thoughts

Handling a KRA tax assessment doesn’t have to be stressful. By acting promptly, verifying your records, and following the proper procedures, you can resolve the matter efficiently and maintain good standing with the tax authority.

Remember — transparency, compliance, and timely response are the best ways to avoid future assessments.

Tax Assessment