Tax Appeals Tribunal Amendment Act 2021: Key Changes Explained
The Tax Appeals Tribunal (Amendment) Act, 2021 has introduced wide-ranging reforms aimed at strengthening the independence, professionalism, and efficiency of Kenya’s tax dispute resolution system. These changes affect the appointment process, qualifications, powers, tenure, and operations of the Tribunal, with significant implications for taxpayers, businesses, and tax professionals.
Below, we break down the most important updates.
1. Power of Appointment
Before: The Cabinet Secretary for Finance/National Treasury had the power to appoint the Chairperson and members.
Now: This mandate has shifted to the Judicial Service Commission (JSC), enhancing independence and reducing potential political influence.
2. Tribunal Constitution and Membership
The composition remains a Chairperson plus 15–20 members.
However, the professional mix has been adjusted:
- Not less than 5 and not more than 9 must be Advocates of the High Court.
- The remainder will be professionals in business, finance, economics, insurance, or related fields.
This ensures a balance between legal expertise and sectoral knowledge.
3. Educational and Integrity Requirements
Key qualifications now include:
- At least 10 years’ experience in the relevant field.
- Not a public officer or KRA employee (within the last 5 years).
- Compliance with Chapter Six of the Constitution (integrity and leadership).
- Up-to-date tax compliance.
This change safeguards impartiality and builds public trust.
4. Appointment Procedure
Appointments will now follow a transparent process:
- Vacancies declared publicly by the JSC.
- Applications invited via two national newspapers.
- Selection panel conducts shortlisting and interviews.
- Final appointments made by JSC and published in the Kenya Gazette.
The process also ensures compliance with the two-thirds gender rule and inclusion of persons with disabilities and marginalized groups.
5. Tenure and Service Terms
- Chairperson & Members: Will now serve on a full-time basis until end of term or removal.
- This replaces the previous fixed-term structure (5 years for Chairperson, 3 years for members).
6. Secretariat and Staffing
- Secretary to the Tribunal and other staff will now be appointed by the Public Service Commission (not Treasury).
- The Secretary must hold a degree in law, business, finance, economics, or insurance and have at least 10 years’ senior management experience.
This strengthens professionalism in the Tribunal’s administration.
7. Financial Management and Oversight
The Tribunal will now manage its own funds, sourced from:
- Parliamentary appropriations.
- Grants, donations, or bequests.
- Filing fees and fines.
- Any additional funds approved by the Cabinet Secretary.
The Auditor General will audit accounts under the Public Audit Act, 2015, introducing accountability standards.
8. Expanded Powers and Protections
- The Tribunal may review its own orders or decrees where new evidence, error, or sufficient cause exists.
- Extension of appeal timelines is now possible by resolution.
- Members and officers are protected from personal liability unless acts were negligent, dishonest, or unlawful.
9. Saving and Transition Provisions
- Existing Chairperson, members, and staff will continue serving until their terms end or until new appointments are made.
What These Changes Mean for Businesses and Taxpayers
- Greater independence of the Tribunal enhances fairness in tax disputes.
- Transparency in appointments promotes credibility.
- Stricter qualifications ensure cases are heard by highly competent professionals.
- Operational autonomy and financial independence are expected to improve efficiency and reduce delays.
For businesses, this means tax appeals are likely to be handled more professionally, transparently, and efficiently, though stricter procedural compliance will also be expected.
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- Finance Bill 2025: VAT Amendments in Kenya
- Finance Bill 2025: Excise Duty Act Changes
- Common VAT Compliance Mistakes in Kenya
- Key Trends Shaping Kenya’s Banking & Financial Sector
- Big Changes to Levy Exemptions
Need Help Navigating Tax Disputes?
At UHY Kenya, our tax experts provide comprehensive support in KRA disputes, Tribunal appeals, and compliance advisory. Contact us today at tax@uhy-ke.com to discuss how these changes may impact your case.
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