The Kenya Revenue Authority (KRA) has announced that it successfully unlocked Ksh 86.518 billion for collection through its Tax Dispute Resolution programme in the latest financial year through a combination of Alternative Dispute Resolution (ADR), litigation outcomes, and independent reviews of tax objections.
KRA says Ksh 18.898 billion was resolved through the ADR mechanism, a growing alternative that more taxpayers are turning to for quicker, less adversarial resolutions. Ksh 67.620 billion was released for collection following 2,389 successful court decisions.
As part of its commitment to resolving disputes fairly and efficiently, KRA’s Independent Review of Objections Section handled 3,594 cases. These reviews are designed to give taxpayers a chance to resolve disagreements with the Authority without going to court, a route often associated with delays and high legal costs.
KRA also reported that 1,152 cases were settled through ADR during the financial year, a clear signal that more taxpayers are embracing this model. ADR allows both parties, the taxpayer and KRA, to participate in a structured, yet flexible and voluntary process. Unlike court proceedings, ADR is informal, confidential, and generally more cost-effective, with resolutions often reached much faster.
The Authority is now calling on taxpayers to explore ADR as a first step in resolving tax disputes. KRA also encourages compliance as the best way to avoid disputes altogether.
KRA aims to build trust and collaboration between taxpayers and the tax authority, while ensuring the country continues to collect the revenue it needs to grow through promoting accessible and non-confrontational methods of resolving disagreements.
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