The Kenya Revenue Authority (KRA) has released Sh86.518 billion for collection through its Tax Dispute Resolution programme, showcasing the agency’s growing reliance on non-adversarial mechanisms to enhance revenue collection.
According to a statement from the Authority, the amount was unlocked through a combination of Alternative Dispute Resolution (ADR) mechanisms and successful litigation. Of the total, Sh67.620 billion was released following 2,389 favourable outcomes in court, while Sh18.898 billion was realized through the ADR platform.
The initiative is part of KRA’s broader strategy to improve tax compliance and reduce the backlog of unresolved disputes. The Independent Review of Objections Section handled 3,594 cases during the reporting period, highlighting the scale and demand for timely tax dispute settlement.
ADR, which is voluntary, confidential, and less formal than court processes, continues to gain traction among taxpayers. In the financial year under review, KRA concluded 1,152 cases using this method. The Authority described this performance as “outstanding,” noting that it demonstrates increasing taxpayer confidence in the platform.
The KRA emphasized that ADR allows for more flexibility, as parties can mutually agree on the forum and maintain control over the proceedings. Additionally, it is cost-effective and tends to result in quicker settlements compared to lengthy court battles.
“This outstanding performance demonstrates that taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR,” the Authority stated.
By resolving disputes earlier and more efficiently, KRA aims to avoid the time and financial costs typically associated with full litigation. The strategy is also helping to foster a more cooperative and less confrontational relationship between taxpayers and the revenue authority.
The KRA’s legal and board services department reaffirmed its commitment to upholding fairness while enhancing compliance. It urged individuals and institutions engaged in tax disputes to consider ADR as a viable and efficient option.
KRA concluded by encouraging taxpayers to stay compliant and utilize available resolution platforms when necessary to avoid future disputes.
