The Kenya Revenue Authority has announced that it has unlocked Sh86.518 billion for collection through its Tax Dispute Resolution programme, signalling growing success in resolving tax conflicts without prolonged legal battles.

In a statement, the authority said the funds were released through a combination of Alternative Dispute Resolution (ADR) and court rulings, with Sh18.898 billion coming from ADR settlements and Sh67.620 billion from 2,389 favourable outcomes in court.

“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 statement read.

KRA said the move is part of efforts to improve revenue collection by using faster, less confrontational means of resolving tax disputes.

The statement also revealed that the Independent Review of Objections Section handled 3,594 cases during the reporting period. The authority said this approach helps avoid the costs and delays that often come with full court hearings.

The ADR process, which is both voluntary and participatory, has continued to gain traction among taxpayers. KRA successfully resolved 1,152 cases through this method during the financial year.

“This outstanding performance demonstrates that taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR.”

Unlike traditional court processes, ADR is less formal and offers flexibility, faster settlements, and confidentiality. Both parties involved in a dispute have a say in selecting the platform and how the process is managed.

KRA said this method is not only helping clear backlogs but is also encouraging a more collaborative environment between the authority and taxpayers.

KRA urged Kenyans to remain compliant to avoid disputes, and encouraged those with ongoing tax issues to explore available resolution mechanisms, especially ADR.

“KRA urges all parties involved in tax disputes to consider ADR as a viable, cost-effective, and efficient resolution mechanism,” the authority said.

The legal and board services department reaffirmed KRA’s commitment to tax compliance and fair dispute handling.