KRA Powers: 8 Things KRA Can’t Legally Do to Taxpayers

Updated 2 November 2026

KRA powers are wide but not unlimited: under the Tax Procedures Act, 2015, the Kenya Revenue Authority cannot keep your bank funds frozen beyond ten working days without a High Court order, cannot search your premises without a warrant, cannot take more than 20% of each salary payment through an agency notice, cannot sell a property it has placed a caveat on until two months after notice, and must decide your objection within 60 days or it is deemed allowed.

Below are eight limits on KRA’s collection and enforcement powers, each from the Act itself with the section number. Updated November 2026. Source: Tax Procedures Act, 2015 (Kenya Law), as amended up to the Finance Act, 2025.

Where KRA powers come from

The Commissioner General and “authorised officers” act under the Tax Procedures Act, which sets out how KRA registers taxpayers, assesses tax, collects arrears and handles disputes. Section 7 gives authorised officers some police powers for enforcement, but the Act also attaches conditions to the most intrusive tools. The table summarises them.

8 things KRA can’t do under the Tax Procedures Act

1. Freeze your money indefinitely without a court. A preservation notice under section 43(2) stops a bank or debtor releasing your funds for ten working days or until the High Court decides KRA’s application. Section 43(3) to (5) require KRA to apply to the High Court, and any order lasts 30 days unless the court extends it. Once served, you have 15 days to ask the court to discharge or vary it (section 43(6)).
2. Take your whole salary through an agency notice. When KRA asks an employer to deduct unpaid tax from your pay, section 42(3) caps the deduction at 20% of each salary payment after income tax.
3. Search your home or office without a warrant. Section 60(1) gives KRA access to premises and records “with a warrant”. Officers may secure the place before getting the warrant (section 60(2)), and under section 60(5) an officer who cannot produce the Commissioner’s written authorisation when asked may not enter or stay.
4. Keep seized documents or devices for ever. Section 60(9) limits retention to six months unless they are needed for proceedings, and section 60(7) lets you inspect and copy seized documents during KRA’s business hours.
5. Sell your land or car without warning. Under section 40, KRA can register a restraint on property such as land, a vehicle, ship or aircraft for unpaid tax, but must notify you in writing within seven days. It can sell only if the tax remains unpaid two months after you receive the notification, and an agreed payment plan has to run its course first.
6. Sell seized goods immediately or keep the surplus. A distress order under section 41 must be in writing and list the taxpayer, amount and property. Non-perishable goods can be sold only if the tax is still unpaid ten days after they are secured, and any balance after costs and tax goes back to you (section 41(7)).
7. Sit on your objection. You must object within 30 days of a tax decision (section 51(2)). KRA must then decide within 60 days of a valid objection; if it does not, “the objection shall be deemed to be allowed” (section 51(11)). You can appeal to the Tax Appeals Tribunal within 30 days of the decision.
8. Share your tax information freely. Section 6 requires KRA to keep taxpayer documents confidential. Disclosure is allowed only to listed bodies, such as courts, the Auditor-General, KNBS, the anti-corruption authority, treaty partners or other government institutions for their duties, or to anyone you consent to in writing.

Powers KRA does have

Being fair to the taxman: the Act lets KRA recover tax as a debt in court (section 39), charge late payment interest (section 38), stop a person leaving Kenya with a departure prohibition order where it believes tax will go unpaid (section 45), and demand records and information (section 59). Penalties for late filing and late payment are worked out in our KRA penalty calculator; you can see what you owe by following how to check KRA penalties on iTax.

What to do if KRA overreaches

• Ask for the written notice, order or warrant, and the officer’s written authorisation.
• Lodge an objection on iTax within 30 days, stating the grounds, the amendments you want and why; pay any tax not in dispute (section 51(3)).
• For a preservation order, apply to the High Court within 15 days of service to discharge or vary it.
• Consider a payment plan or extension of time to pay (section 33); see the KRA help hub for amnesty, refunds and contacts.

Frequently asked questions

Can KRA freeze my bank account without a court order?

Only briefly. A preservation notice under section 43 lasts ten working days or until the High Court decides KRA’s application. Keeping the funds frozen needs a High Court order, valid for 30 days unless extended.

How much can KRA take from my salary?

Under an agency notice to your employer, no more than 20% of each salary payment after income tax (section 42(3)).

Can KRA officers enter my business premises?

For a search and seizure, they need a warrant and must show the Commissioner’s written authorisation if asked (section 60). Section 58 separately allows inspection of goods and records for tax purposes.

What if KRA does not answer my objection?

If KRA does not decide a validly lodged objection within 60 days, it is deemed allowed under section 51(11).

Source: Tax Procedures Act, 2015 (No. 29 of 2015), sections 6, 40 to 43, 51 and 60, read 2 November 2026. General information, not tax or legal advice.