The Kenya Revenue Authority (KRA) has announced the release of Sh86.518 billion for collection through its Tax Dispute Resolution programme.
In a statement, KRA said the amount was unlocked through a combination of independent reviews, including the Alternative Dispute Resolution (ADR), and successful litigation.
“During the period review, Sh18.898 billion was released for collection through KRA’s ADR mechanism, while Sh67.620 billion was released for collection as a result of 2,389 successful outcomes in the courts,” the authority said.
This comes as the agency intensifies efforts to enhance revenue collection using more efficient and less adversarial mechanisms.
The Independent Review of Objections Section handled 3,594 cases during the reporting period, the statement said.
This approach aims to settle disputes early, avoiding the time and costs often associated with full litigation.
ADR, which is voluntary and participatory, has continued to gain popularity. During the financial year, KRA successfully concluded 1,152 cases through this method.
The authority described the performance as outstanding and said it was proof that taxpayers are embracing the programme.
Unlike court proceedings, ADR is less formal and offers greater flexibility. It is also confidential, cost-effective, and tends to deliver quicker settlements.
The process allows both parties to select the forum and maintain control over the proceedings.
KRA noted that ADR is not only helping resolve disputes but also building a more cooperative relationship between the Authority and taxpayers.
The authority encouraged Kenyans to stay compliant to avoid future disputes and take advantage of the available resolution platforms when necessary.
“This outstanding performance demonstrates that taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR.”
The KRA’s legal and board service department reaffirmed its commitment to fostering tax compliance while ensuring that disputes are handled efficiently and fairly.
“KRA urges all parties involved in tax disputes to consider ADR as a viable, cost-effective, and efficient resolution mechanism,” the taxman said.
