NAIROBI, Kenya, July 29 – The Kenya Revenue Authority (KRA) collected Sh86.52 billion from out-of-court settlements from individuals and companies in the last financial year that ended on June 30, 2025.
While Sh18.898 billion was released for collection through KRA’s Alternative Dispute Resolution (ADR) mechanism, Sh67.620 billion was as a result of 2,389 successful outcomes in the courts.
ADR, which involves the taxpayer, commissioner, and facilitator, is an alternative method of resolving and managing tax disputes outside the judicial process and quasi-judicial process or Tax Appeals Tribunal (TAT).
“Through its Independent Review of Objections Section, KRA undertook independent reviews of 3,594 objection cases as part of its broader Tax Dispute Resolution framework,” KRA said in a statement.
“These reviews aim to prevent escalation into litigation processes which can be lengthy and costly to the parties.”
Furthermore, KRA concluded 1,152 cases through its ADR mechanism.
“Being a voluntary and participatory process, it allows parties not only to choose the forum but also to control the process. It is also less formal than court proceedings, offering greater flexibility. In addition, ADR is confidential, cost-effective, and often results in quicker settlements.”
