Navigating Post Clearance Audits By KRA: A Guide For Taxpayers Importing Into Kenya

Recently, the Kenya Revenue Authority (the KRA) has been aggressive in conducting post clearance audits. A post clearance audit refers to the review conducted by the KRA of the import transactions and records after goods have already been cleared and released from Customs control. The KRA employs post clearance audits as a vital tool to ensure compliance with the Customs legislation by the importers/taxpayers. Other reasons for conducting post clearance audits include protecting tax revenues by identifying revenue leakages and maintaining a level playing field for all the importers.

Timelines and Key Focus Areas by the KRA during Post Clearance Audits

Customs legislation allows the KRA to conduct post clearance audits on records going back up to five years unless fraudulent activities by the taxpayers are detected, which would necessitate extension of the five-year period.