NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has announced it has unlocked over Sh86.5 billion for collection through its Tax Dispute Resolution programme, in a major boost to the country’s revenue mobilization efforts.
In a statement on Tuesday, KRA said the funds were recovered through a combination of Alternative Dispute Resolution (ADR) and successful litigation outcomes.
“During the period under review, Sh18.898 billion was released for collection through KRA’s ADR mechanism, while Sh67.620 billion was released following 2,389 successful outcomes in court,” the statement read.
The agency processed a total of 3,594 objection cases under its Independent Review of Objections Section, while 1,152 cases were successfully concluded through ADR.
Embracing Less Adversarial Tax Resolution
The tax authority praised the performance as proof that taxpayers are increasingly embracing non-litigious resolution channels, which offer faster, confidential, and cost-effective outcomes compared to traditional court processes.
“Unlike court proceedings, ADR is less formal and allows both parties to maintain control over the process while resolving disputes efficiently,” KRA noted.
KRA said the growing popularity of ADR is not only improving compliance but also fostering a more cooperative relationship between taxpayers and the Authority.
Efficient, Cost-Saving Mechanism
The ADR mechanism is designed to settle disputes early, avoid lengthy court battles, and ease the burden on Kenya’s legal system.
The Authority highlighted the process as voluntary and participatory, allowing both KRA and the taxpayer to select a neutral forum and reach mutually acceptable resolutions.
“This outstanding performance demonstrates that taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR,” said the KRA legal and board services department.
KRA is encouraging more taxpayers with disputes to consider ADR as a viable and efficient mechanism to resolve disagreements while maintaining tax compliance.
The taxman also reminded Kenyans to remain compliant and make use of available channels to resolve any disputes that may arise.
