The Kenya Revenue Authority (KRA) has announced the successful release of KSh 86.518 billion for collection through its Tax Dispute Resolution (TDR) programme, highlighting a shift in how tax disputes are being settled across the country.
The revenue was secured through a combination of:
- Alternative Dispute Resolution (ADR): KSh 18.898 billion
- Litigation Outcomes: KSh 67.620 billion from 2,389 successful court cases
This marks a significant milestone in KRA’s efforts to modernize and streamline tax compliance, offering taxpayers more flexible, transparent, and efficient ways to resolve disputes.
Breaking Down the Numbers
| Resolution Method | Amount Released for Collection | Number of Cases |
|---|---|---|
| Alternative Dispute Resolution (ADR) | KSh 18.898 billion | 1,152 cases |
| Successful Litigation Outcomes | KSh 67.620 billion | 2,389 cases |
| Total | KSh 86.518 billion | — |
Additionally, 3,594 objection cases were independently reviewed under KRA’s Independent Review of Objections Section, a key preventive mechanism that helps avoid unnecessary escalation into court proceedings.
Alternative Dispute Resolution is increasingly seen as the preferred route for settling tax disputes. Unlike traditional litigation, ADR is:
- Voluntary and participatory
- Less confrontational and more collaborative
- Confidential and cost-effective
- Flexible, with parties able to agree on process and timelines
- Faster, leading to quicker settlements and improved compliance
“This performance highlights the growing trust in ADR as a viable option for resolving tax disputes,” said a KRA official. “We are seeing more taxpayers willingly embrace non-litigious solutions, reducing court backlogs and unlocking revenue faster.”
The increased use of ADR and independent reviews signals a broader shift in Kenya’s tax landscape — one that values dialogue over confrontation, and compliance over coercion.
The KRA’s Independent Review of Objections Section continues to play a pivotal role in mediating early-stage disputes before they reach the courts, helping both taxpayers and the Authority avoid lengthy and costly litigation.
The Authority is encouraging more businesses and individuals with tax disputes to consider ADR as a first-line resolution mechanism. It is urging taxpayers to:
- Be proactive in resolving disputes
- Engage constructively through ADR
- Stay compliant to avoid potential disputes altogether
Key Takeaways
- KRA has unlocked over KSh 86 billion through its TDR strategy.
- ADR is gaining traction as a quicker, friendlier, and more efficient tax resolution method.
- The move aligns with global best practices aimed at enhancing voluntary tax compliance and reducing legal bottlenecks.
- Taxpayers are urged to explore non-court options to resolve conflicts with the Authority.
