Tax Procedures Act

This Act may be cited as the Tax Procedures Act.

Section 2 states the Act's objects: (a) consistency and efficiency in administering tax laws, (b) facilitation of taxpayer compliance, and (c) effective and efficient tax collection; it provides that the Act's procedures apply unless a tax law specifies a unique procedure, and that the Act should be interpreted to promote its object.

Section 3 provides definitions and interpretation rules used in the Act, including meanings of terms such as Commissioner, due date, person, and accounting officer.

The Commissioner has functions including control and collection of taxes, accounting for collected taxes, and (subject to the Cabinet Secretary) general administration of tax laws; the Commissioner shall appoint authorised officers who must enforce tax laws, make inquiries, and produce identity documents on demand.

The Commissioner may delegate in writing most powers and functions under a tax law to an authorised officer (except the power under section 4); the Commissioner may revoke such delegation in writing at any time; decisions/notices by an authorised officer may be withdrawn or amended by the Commissioner or that authorised officer and are deemed to have been made by the Commissioner until withdrawn.

The Commissioner or an authorised person must keep confidential documents and information obtained while administering tax law, subject to specified permitted disclosures.

Agreements and treaties entered into by or for the Government of Kenya on international tax matters have effect as they specify; information obtained under such agreements must not be disclosed except according to the agreements' conditions.

Reporting financial institutions in Kenya must follow the common reporting standard: carry out due diligence and record-keeping, and file information returns or a 'nil' return; arrangements designed to avoid these obligations are disregarded; the Cabinet Secretary may make Regulations to prescribe the Standard.

Authorised officers, when administering tax law and performing their duties, shall have the same powers, rights, privileges and protection as a police officer; they also have powers to enter and search premises or vessels and seize and produce evidence in proceedings.

Persons who cease to be required to be registered for a tax must apply to the Commissioner for deregistration (in the prescribed form and within thirty days); the Commissioner notifies deregistration when satisfied and may deregister on their own motion; failure to respond within six months causes the applicant to be deemed deregistered.

The Commissioner must issue a personal identification number (PIN) to any person registered for tax purposes, and that person must use the PIN as required under this Act.

The Commissioner must issue Personal Identification Numbers (PINs) to registered persons and to certain applicants; registered persons must use a PIN for all tax laws and may only have one PIN at a time. The Commissioner may exempt persons or classes from PIN requirements for transactions in the First Schedule.

Each person is assigned one PIN which only that person may use, except that a tax agent may use the person's PIN if the person gives written permission and the agent uses it only for that person's tax affairs.

A person issued a PIN under section 12(3) but not registered under section 8 must notify the Commissioner in writing when they no longer require the PIN for a transaction in the First Schedule; the Commissioner may cancel and reissue PINs in writing at any time.

Section 15 lists who qualifies as a taxpayer's tax representative (paragraphs (1)(a)–(j)) and defines certain terms in subsection (2).

Non-resident persons required to register must appoint a written tax representative in Kenya; the Commissioner may appoint one if they fail to do so; representatives must have separate registrations for each non-resident person and the Commissioner must issue a PIN to the representative.

Tax representatives are responsible for duties and obligations imposed on a taxpayer (including filing returns and paying tax); they must comply with other tax laws, each representative is responsible for obligations they were appointed for, representatives who pay tax with taxpayer authority are indemnified by the taxpayer, and taxpayers remain liable for obligations their representatives fail to perform.

Appointed persons (administrators, executors, receivers, trustees, liquidators) must notify the Commissioner in writing of their appointment within 15 days; the Commissioner must inform the appointed person of tax payable within two months; appointed persons must set aside notified amounts from sale proceeds and may not dispose of assets without prior Commissioner approval until notified or two months pass; they are personally liable to the extent required.

Directors and controlling members who enter (or are present when) arrangements intended to make the company unable to meet current or future tax liabilities are jointly and severally liable for the company's tax liability, subject to defenses in subsection (2).

Individuals or partnerships may apply to the Commissioner for a tax agent licence; applications must be in the prescribed form with the prescribed fee and applicants must be recommended for registration by the Tax Agents Committee.

The Commissioner must issue a licence under section 19 to an applicant who is a fit and proper person to prepare tax returns or transact business with the Commissioner on behalf of taxpayers.

Prohibits representing another person as that person's tax agent or offering assistance for a reward in relation to that person's rights or obligations under a tax law; subsection (1)(b) does not apply to a legal practitioner acting in the ordinary course of the person's profession.

Tax agents must notify the Commissioner in writing at least seven days before they stop acting as tax agents; they may apply in writing to cancel their licence; the Commissioner may cancel licences for listed grounds and shall notify agents in writing of cancellations.

Specifies who must register for tax and sets duties and powers for the Commissioner regarding registration, notifications, and using registration information for other tax laws.

Section 9: "Supply of information upon change in particulars."

Requires persons to keep tax‑related documents (in official languages and in a form that enables tax liability to be ascertained), retain them generally for five years (subject to subsection (3)), requires trustees resident in Kenya to maintain and make records available to the Commissioner, allows the Commissioner to require translations at the person's expense, and permits Regulations to provide simplified record‑keeping for small businesses.

The Commissioner may set up an electronic system for issuing electronic tax invoices and keeping stock records; invoices required to ascertain tax liability issued by resident persons or permanent establishments of non-residents must be generated through that system; the Commissioner may exempt a person by notice in the Gazette.

Authorised officers may inquire into affairs under any tax law, have full and free access to inspect lands, buildings, goods, equipment, devices and records and may make extracts or copies; they may also require owners, employees or representatives to give assistance and answer questions.

Persons served with a notice must produce documents, furnish information, or attend to give evidence as specified; the Commissioner or authorised officer may copy documents, administer oaths, and must maintain confidentiality and use information only for tax law purposes.

The Commissioner may set up an electronic data management and reporting system; the Commissioner must notify persons required to submit documents; those persons must submit electronic documents including specified transactional details.

Commissioner or authorised officers may (with a warrant) access buildings, places, property, documents, or data devices to administer tax law; they may copy, seize and require assistance or decryption; owners must assist; officers may not enter without written authorization; seized items generally retained no longer than six months unless needed for proceedings; persons whose items are seized may inspect and copy during Authority business hours.

If the Commissioner is satisfied someone committed a tax-law offence, the Commissioner may by written notice require that person to appear before him.

Persons required to submit tax returns must submit them in the approved form and in the manner prescribed by the Commissioner; the Commissioner may assess a taxpayer's liability using any information available to the Commissioner.

A person must, when required by the Commissioner, furnish the Commissioner with returns showing information in the form, manner and within the time the Commissioner prescribes.

A person required to submit a tax return may apply in writing to the Commissioner for an extension of time to submit the return; rules specify timing for monthly and annual returns, limits on extensions, and that extension does not change the original tax payment date or penalty provisions.

The Commissioner may require a taxpayer to submit a tax return in specified circumstances; the taxpayer (or their tax representative) must submit the return by the notice date and pay any tax due.

A tax return that appears to have been submitted by another person on behalf of a taxpayer will be treated as if it was submitted by the taxpayer or with the taxpayer's authority unless proven otherwise.

Submitting a prescribed self-assessment return is treated as the taxpayer making an assessment of the amount shown in the return (including nil); similar treated-assessments apply for income-tax deficits and excess input tax.

A written notification by the Commissioner of an assessment does not change the original due date for payment of the tax; late penalties and interest remain based on that original due date.

The Commissioner may make an "advance assessment" of tax for a reporting period and must make one if a taxpayer has not submitted a return; advance assessments must state specified items and taxpayers must still submit returns as required.

Taxpayers who made a self-assessment may apply to the Commissioner to amend it within the specified period; the Commissioner may accept or reject amended returns, must give reasons within thirty days if rejecting, must make amended assessments when applications meet the time limit, and must include reasons in notifications of amended assessments.

Taxes payable by a person are debts due to the Government and payable to the Commissioner; taxpayers required to pay electronically must do so unless authorised in writing by the Commissioner to use another method.

Allows the Commissioner to recover or collect tax claims under international tax agreements and sets procedures for notices, payment, recovery, and remittance to the requesting party.

Taxpayers may apply in writing to the Commissioner for an extension of time to pay tax; the Commissioner may grant an extension or require instalments and must notify the taxpayer of its decision within thirty days; taxpayers remain liable for late payment interest from the original due date.

Certain tax amounts listed in subsection (1) are given priority: they do not form part of a bankrupt or liquidated person's estate and must be paid to the Commissioner before any distribution; they are protected from attachment, constitute a first charge on the payment from which tax is withheld, and must be deducted before other deductions (including under court orders).

Specifies the order in which a payment is applied: first to tax liability, then to penalty, then to late payment interest; if multiple tax liabilities exist, payments are applied in the order the liabilities arose; aggregate interest cannot exceed the principal tax liability.

The Commissioner may require a person to furnish a security to secure payment of any tax due or which shall become due, in the manner and amount the Commissioner prescribes.

Section 37 was repealed (Repealed by Act No. 4 of 2023, s. 55).

Section 37A has been repealed.

The Commissioner must not assess tax on income earned outside Kenya if the income for 2017 was declared, returns for 2017 were submitted by 30 June 2019, and the funds were transferred back to Kenya.

The Commissioner must not recover penalties or interest from a company that lists on the growth segment for prior years if the company fully discloses its two prior years' income, assets and liabilities and pays the principal tax in full.

Establishes a three-year Voluntary Tax Disclosure Programme (from 1 Jan 2021) allowing persons with past tax liabilities to apply to the Commissioner for remission of penalties and interest on liabilities accrued within five years before 1 July 2020, with varying remission rates by year and conditions on agreements and appeals.

The Commissioner must not recover or remit interest or penalties in certain cases; persons who have unpaid principal must apply for amnesty and propose a payment plan and, if applying, pay outstanding principal by 30 June 2024.

A person who fails to pay tax by the due date must pay late payment interest at one per cent per month (or part month) on the unpaid amount from the due date until payment; if the principal (or part) was not payable the interest paid shall be refunded to that person.

The Commissioner may recover unpaid tax as a civil debt due to the Government; if the unpaid amount does not exceed one hundred thousand shillings the debt is recoverable summarily.

If a person required to deduct or withhold tax and remit it to the Commissioner fails to do so, the collection and recovery provisions (including penalties and interest) apply as if the unpaid amount were tax due and payable by that person; but if the recipient has already paid the full principal tax, the payer is not required to pay that principal tax.

If a taxpayer who owns property in Kenya fails to pay tax by the due date, the Commissioner must notify the Registrar in writing that the taxpayer’s interest in the property will be security for the unpaid tax; the Commissioner must inform the taxpayer and interested persons within seven days; the Registrar must register the notification without fee; on full payment the Commissioner must direct cancellation and the Registrar must record it without fee.

Authorises the Commissioner or an authorised officer to issue written distress orders to recover unpaid tax by seizing and selling a taxpayer's movable property and lists powers and procedures for securing, marking, storing, selling proceeds and recovering shortfalls; requires police presence when requested and obliges police to comply.

The Commissioner may collect unpaid tax by serving notices on persons or agents who hold or owe money to a taxpayer (including non-resident persons subject to tax in Kenya); agents must pay amounts specified, may be required to deduct up to 20% from periodic remuneration, must notify the Commissioner within 14 days if unable to pay, and may be held personally liable for failure to comply without reasonable cause.

The Commissioner may appoint persons to withhold 2% of taxable supplies when paying for them and those agents must remit the withheld tax to the Commissioner; remitted amounts are due within five working days. Exemptions and special exclusions apply.

Section 42B was repealed by Act No. 9 of 2025, s. 55.

The Commissioner may appoint an agent to collect and remit rental income tax, and may revoke such an appointment at any time.

The Commissioner may apply to the High Court for an order preventing persons holding a taxpayer's funds from dealing with them when specified conditions are met; the Court may grant such an order, it is initially valid for thirty days (subject to extension), the Commissioner must serve the order and may assess and recover tax if not discharged, the taxpayer may apply within fifteen days to discharge or vary the order, compliant persons are indemnified, and non-compliance without reasonable cause incurs personal liability for the amount specified.

Sections establish circumstances in which the Commissioner or an authorised officer may seize, store, release, dispose of, or forfeit goods where VAT or excise duty is unpaid or related excise matters occur, and set rules for notice, detention periods and application of proceeds.

Imports into Kenya require a valid Certificate of Origin presented to the Commissioner or an authorised officer; the Commissioner/authorised officer must not process entries without it and must require the certificate and supporting proof before clearance; contraventions are an offence leading to seizure or forfeiture of goods under section 44.

The Commissioner may issue a departure prohibition order to prevent a person owing tax from leaving Kenya; the Commissioner must serve the order and notify upon revocation; the Director (or authorised officer) must prevent departure, including confiscating travel documents.

If a taxpayer transfers assets of a business to a related person, the transferee is liable for the transferor's tax liability; the Commissioner may recover all or part of that transferred liability from the transferor.

Section 47 allows offsetting overpaid tax against outstanding or future tax liabilities and sets time limits for claiming refunds; it also provides that refunds must be made within six months of ascertainment and permits the Commissioner to audit applications.

If tax was paid in error, the Commissioner must refund that tax, except where this Act or relevant tax law provides otherwise.

The Commissioner may refund a tax paid in error for supplies that are exempt or zero-rated if the exemption or zero-rating was not processed within the specified period due to circumstances beyond the taxpayer's control, and the refund is made upon approval by the Cabinet Secretary.

If a tax refund was paid in error, the person who received it must, when the Commissioner demands it, repay the amount; if not repaid within thirty days of service of the demand interest accrues at one per centum per month (capped at 100% of the tax originally due).

If the Commissioner refuses an application under a tax law, the notice of refusal must include a statement of reasons.

Produces certain documents or electronic copies are treated as conclusive evidence of assessments or returns.

Taxpayers who dispute a tax decision must first lodge a written objection with the Commissioner (generally within 30 days of notification); the Commissioner must validate, consider and decide on objections within set timeframes and notify the taxpayer in writing.

52(1) allows a dissatisfied person to appeal an appealable decision to the Tribunal under the Tax Appeals Tribunal Act; 52(2) says a notice of appeal about an assessment is valid only if the taxpayer has paid the tax not in dispute or has arranged with the Commissioner to pay it when lodging the notice.

A party dissatisfied with a Tribunal decision may appeal to the High Court within thirty days of notification or within a longer period the High Court allows, under the Tax Appeals Tribunal Act (Cap. 469A).

A party dissatisfied with a High Court decision may appeal to the Court of Appeal within thirty days of notification or within a further period the Court of Appeal allows.

If a court or tribunal permits the parties to settle a dispute out of court or tribunal, the parties must make the settlement within 120 days from the date the court or tribunal permits it.

Taxpayers bear the burden of proving a tax decision is incorrect; when a taxpayer appeals, they must rely only on the grounds stated in their objection unless the Tribunal or Court permits new grounds.

Specifies admissibility of a document, or copy or extract of a document, relating to the affairs of any person seized or obtained by an authorised officer under sections 58, 59 or 60.

The Commissioner may issue public rulings (under section 63) that set out the Commissioner's interpretation of tax law; such rulings are binding on the Commissioner until withdrawn but are not binding on taxpayers.

The Commissioner must make a public ruling by publishing a notice of the public ruling in at least two newspapers with nationwide circulation.

The Commissioner may withdraw a public ruling (wholly or partly) by publishing a notice of the withdrawal in at least two nationwide newspapers.

Taxpayers may apply to the Commissioner for a private ruling; the Commissioner must issue rulings within sixty days (subject to section 66); a private ruling is binding on the Commissioner if the taxpayer made full, accurate disclosure and the transaction proceeded as described, but is not binding on the taxpayer; inconsistent private rulings supersede existing public rulings to the extent of the inconsistency.

The Commissioner may refuse an application for a private ruling for listed reasons (such as existing assessment, public ruling, audit, frivolous application, insufficient information, unperformed transaction, resource/unreasonableness, or tax avoidance); if the Commissioner decides not to make a private ruling, the Commissioner must notify the applicant in writing of the decision.

If the Commissioner issues a private ruling, the Commissioner must notify the applicant in writing; the Commissioner may make a private ruling based on assumptions about future events or other appropriate grounds.

The Commissioner may withdraw a private ruling, in whole or part, by notifying the applicant in writing.

Section 69 was repealed by Act No. 2 of 2020, Schedule.

The official languages of Kenya are the official languages for tax laws, and the Commissioner may refuse to recognise communications or documents that are not in an official language.

Documents must be in the form the Commissioner prescribes and contain required information and signatures; the Commissioner or an authorised officer must notify a person in writing if their submitted document is not in the prescribed form.

Any person may apply to the Commissioner for a Tax Compliance Certificate; the Commissioner may issue and may revoke such a certificate subject to conditions the Commissioner imposes and specified findings.

People required to submit tax documents electronically must do so, unless the Commissioner authorises a different method; persons not required to submit electronically must submit by personal delivery or normal post.

The Commissioner serves notices by delivering to the person or their tax representative, leaving or posting to their usual/last known business or residence address, or transmitting electronically.

The Commissioner may issue, serve, make or do certificates, notices, documents or other acts required under a tax law using computer systems, mobile electronic devices or other electronic or mobile communication.

In proceedings under this Act, a statement in a document in electronic form is admissible as evidence if the document is produced in the manner prescribed by this Act or any other tax law.

Due date for submission and payment for submitting or lodging a tax return, application, notice, or other document.

Notices of assessment or other tax documents are not invalidated, quashed, or affected for want of form or by any mistake, defect, or omission, and non-compliance with tax law provisions does not affect their validity.

The Commissioner may amend an assessment or other document to correct an apparent mistake that does not involve a dispute over law or facts, at any time before five years from the date the notice was served.

It is an offence for a person to hinder or obstruct the Commissioner or an authorised officer while they are performing duties under a tax law.

A person commits an offence if they aid, abet, assist, incite or induce another to commit an offence under a tax law and is liable to the same sanction as for that principal offence.

Officers and staff of the Authority commit offences under section 102 if they do any of the acts listed in subsections (1)(a)–(g); section 102(2) makes contravening section 6 an offence; section 102(3) defines "authorised officer".

If someone acting as an employee or agent commits a tax-law offence, that person's employer or principal is to be treated as having committed the offence as well; listed company officers may avoid that treatment if the offence occurred without their consent or knowledge and they exercised reasonable diligence to prevent it.

Knowingly accessing or using information from a computerized tax system without lawful authority, or receiving and disseminating such information when not authorized, is an offence; penalties differ for natural persons and bodies corporate.

It is an offence to falsify, damage or impair a computerized tax system or related media without the Commissioner's permission; a person convicted under these provisions faces up to three years imprisonment, a fine up to eight hundred thousand shillings, or both.

Persons convicted of offences specified in this section face fines and/or imprisonment with amounts and maximum terms varying by referenced offence.

If someone is convicted of a tax offence and taxes remain unpaid, the court may order that the convicted person pay the Commissioner the unpaid taxes, wholly or in part.

A person charged with an offence under a tax law may be prosecuted in any place in Kenya where they are in custody for that offence, and that place is treated as where the offence was committed.

An authorised officer may appear in court for the Commissioner and, subject to the Director of Public Prosecutions' direction, may prosecute; such an officer conducting a prosecution has the powers of a public prosecutor under the Office of the Director of Public Prosecutions Act (Cap. 6B).

Prosecution of a taxpayer does not abate tax or late payment interest due and payable under tax law.

The Commissioner may compound certain tax offences and order payment or forfeiture, but must not do so unless the offender admits the offence in writing and requests compounding.

A person may not be both penalised and prosecuted for the same tax-related act or omission; the Commissioner must choose between demanding a penalty or prosecuting, and a person shall not pay a penalty during a prosecution unless it is withdrawn.

Section 81 sets timing rules for when penalties for registration or deregistration begin and end, caps such penalties at one million shillings, applies only where another tax law does not already impose an administrative penalty, and states that "registration" includes licensing.

A person who fails to keep documents relating to a reporting period must pay a penalty: either ten per cent of the tax payable for that reporting period or, if no tax is payable for that period, one hundred thousand shillings.

Section 83 sets late-submission penalties: subsection (1) prescribes percentage or fixed-shilling penalties for various return types; subsection (2) imposes KSh 1,000 per day (capped at KSh 50,000) for failure to submit documents other than tax returns; subsection (3) stops default when the Commissioner receives the document.

A person who fails to pay tax on the due date must pay a late payment penalty equal to five percent of the tax due and payable.

Section 84 sets out penalties for tax shortfalls arising from false or misleading statements and provides percentage multipliers for deliberate or repeat conduct; it also lists defences and allows the Commissioner or an authorised officer to impose late payment interest.

If the Commissioner applies a tax avoidance provision when assessing a taxpayer, that taxpayer must pay a tax avoidance penalty equal to double the amount of tax that would have been avoided.

If a taxpayer fails to follow an electronic-tax requirement, the Commissioner must write to the taxpayer asking for reasons; if those reasons do not satisfy the Commissioner, the taxpayer is liable to a penalty equal to two times the tax due.

A penalty of ten thousand shillings applies in the case of an individual for failure to appear before the Commissioner.

A person who fraudulently claims a tax refund must pay a penalty equal to twice the amount claimed.

Section 88A sets penalties for making false or incomplete information returns, for reporting financial institutions failing to file required returns, and for failure to comply with duties under section 6B.

The Commissioner must decide which penalty applies when multiple penalties arise and must notify a person in writing of a penalty demand with the amount and a due date at least 30 days after the notification.

Section 90 makes it an offence to fail to apply for registration, deregistration or cancellation of registration as required under a tax law, and an offence to apply for deregistration or cancellation when still required to be registered; it also applies where another tax law does not provide such an offence.

Section 91 makes it an offence to use a false PIN on tax documents and to obtain a PIN by false or forged documents or by fraud, misrepresentation or deceit.

A tax agent must notify the Commissioner as required under section 22(1).

Section 93 creates offences for failing to keep required tax documents, deliberately preparing or maintaining false tax documents, and falsifying documents relating to tax law.

A person who, without reasonable cause, fails to submit a tax return or other document required under a tax law by the due date commits an offence; if convicted they must furnish the document within a time the Court may specify.

A person commits an offence if that person fails to pay tax by the due date.

A person must not make to an authorised officer a statement that is false or misleading in a material particular, nor omit any matter which would make the statement false or misleading.

The Commissioner may seek a relevant authority's help to collect tax from persons providing services over the internet or an electronic network, including through digital marketplaces, when those persons have not fulfilled their tax obligations.

Creates a fraud provision titled "Fraud in relation to tax" concerning omission from a tax return of amounts that should have been included.

It is an offence for a person who is not an authorised officer to assume the name or designation of an authorised officer and perform or procure acts they are not entitled to.

Section 98 lists various actions related to recovery of tax that constitute offences and states that a person who notifies the Commissioner in writing under section 42(4) is treated as in compliance with a notice under section 42(2) until the Commissioner cancels, amends or rejects that notification under section 42(5).

Section 99 makes it an offence for a person to (1) fail to provide information or documents, fail to appear, or fail to answer questions required by the Commissioner or authorised officer; and (2) without reasonable excuse, fail to provide reasonable facilities and assistance as required by section 60(3)(d),(e),(f) and (6).

Protection of officers in respect of acts done or committed wilfully or dishonestly by such officer.

The Cabinet Secretary may make Regulations to carry the Act's provisions into effect.

The section sets transitional and saving rules: the Act applies to past or ongoing acts or omissions where no prosecution or appeal had started before commencement; prosecutions or appeals already started before commencement may continue and be disposed of as if the Act had not come into force; expired periods before commencement are not revived merely because longer periods are provided in this Act; and tax liabilities that arose before commencement may be recovered under this Act despite earlier recovery actions.