NAIROBI, July 29, 2025 – Kenya Revenue Authority has successfully recovered KSh 86.518 billion through its comprehensive Tax Dispute Resolution programme, demonstrating the effectiveness of alternative approaches to traditional litigation in tax collection.
The revenue recovery came through three key mechanisms: Alternative Dispute Resolution (ADR), court litigation, and independent review of objections.
Court victories accounted for the largest portion, with KSh 67.620 billion released for collection following 2,389 successful legal outcomes. Meanwhile, ADR mechanisms contributed KSh 18.898 billion to the total recovery.
The authority’s ADR programme has shown remarkable growth in taxpayer acceptance, with 1,152 cases concluded through this mechanism during the financial year.
This represents a significant shift toward collaborative dispute resolution, moving away from costly and time-consuming court battles.
“ADR is a less confrontational alternative to the court system,” noted Commissioner Paul Matuku of KRA’s Legal & Board Service Department.
The process offers several advantages over traditional litigation, including confidentiality, cost-effectiveness, and faster resolution times.
The voluntary nature of ADR allows both KRA and taxpayers to maintain control over the resolution process while choosing their preferred forum for dispute settlement.
This flexibility has proven attractive to businesses seeking to resolve tax disputes without the formality and expense of court proceedings.
KRA’s Independent Review of Objections Section processed 3,594 objection cases during the review period, serving as a crucial first line of defense against dispute escalation.
This internal review mechanism aims to resolve disagreements before they progress to more complex and expensive litigation processes.
The comprehensive three-tier approach of independent review, ADR, and litigation provides taxpayers with multiple pathways for dispute resolution while maximizing revenue collection efficiency for the authority.
The KSh 86.5 billion recovery represents a substantial contribution to Kenya’s tax collection efforts and demonstrates the potential for collaborative approaches to tax administration.
The success of the programme suggests that taxpayers are increasingly willing to engage constructively with KRA when provided with fair and efficient dispute resolution mechanisms.
KRA has encouraged all parties involved in tax disputes to consider ADR as their primary resolution mechanism, emphasizing its benefits in terms of cost, time, and relationship preservation.
The authority also continues to stress the importance of tax compliance to prevent future disputes.
The programme’s success comes at a critical time for Kenya’s revenue collection efforts, as the government seeks to boost domestic resource mobilization to fund development programmes and reduce reliance on external borrowing.
The Kenya Revenue Authority continues to modernize its operations and improve taxpayer services as part of broader efforts to enhance revenue collection and support economic growth.
