The Kenya Revenue Authority has announced a new independent system to handle complaints about customs tax decisions, in a move meant to boost fairness, transparency, and accountability in dispute resolution processes.

In a notice issued Thursday, KRA said it will from August 1, 2025, begin rolling out the Independent Review of Objections (IRO), a new mechanism that will allow taxpayers to appeal customs-related decisions without going through the Customs Department.

The IRO will be managed by the Commissioner of Legal and Board Services under the Tax Dispute Resolution Division.

According to KRA, the review process has been separated from the Customs Department to enhance neutrality and create a transparent channel for resolving tax disputes. Taxpayers who wish to object to Post Clearance Audit (PCA) demand notices will now be required to file their complaints either through email or by hand-delivering them to the IRO offices in Nairobi.

“Consequently, effective 1st August, 2025, be notified that ALL Post Clearance Audit (PCA) Applications for the review of decisions or omissions made by the Commissioner in issuing a PCA Demand Notice(s), should be lodged with the Office of Independent Review of Objections (IRO) under the Commissioner of Legal and Board Services,” KRA stated.

The IRO system will be introduced in phases. The first phase will begin in August with PCA reviews. In September, it will be expanded to cover disputes related to tariff classification, customs valuation, and exemptions. The third and final phase, starting in November 2025, will include all remaining customs-related matters, such as bonds.

The rollout is being carried out in line with Gazette Notice No. 1036, published on February 1, 2019, and stems from a decision by the Commissioner General to delegate the customs dispute resolution process, as provided under Section 11 of the KRA Act, CAP 469, to the Commissioner for Tax Dispute Resolution.

The move also affects Sections 229 and 230 of the East African Community Customs Management Act (EACCMA), 2004, which establish the legal framework for appealing customs decisions. Section 229 allows any person directly affected by a customs decision or omission to submit a written objection within 30 days, clearly outlining their reasons.

KRA said the legal shift is meant to promote fairness and better practices in customs administration. “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 by an independent unit to ensure an arm’s length and the best practice in managing disputes,” the notice reads.

Taxpayers will be able to submit their objections by emailing [email protected] or hand-delivering them to the IRO office located on the 7th Floor of Ushuru Pension Towers, Elgon Road, Upper Hill, Nairobi.