Kenya Revenue Authority (KRA) has released for collection, a total of Sh 86.518 billion through its Tax Dispute Resolution programme, barely a month after surpassing the revenue target of Sh2.555 trillion for the Financial Year 2024/2025 by 6 per cent after collecting Sh2.571 trillion.
According to a statement released on Friday, July 29 by the commissioner legal and board service department, the agency said it utilises “independent review of objections”, Alternative Dispute Resolution (ADR) mechanism as well as litigation to enhance revenue collection.
During the period review, Sh18.898 billion was released for collection through its ADR mechanism, while Sh67.620 billion was released for collection as a result of 2,389 successful outcomes in the courts.
KRA undertook independent reviews of 3,594 objection cases as part of its broader Tax Dispute Resolution framework. These reviews aim at preventing escalation into litigation processes which can be lengthy and costly to the parties.
“During the financial year, KRA concluded 1,152 cases through its ADR mechanism,” KRA said.
“This outstanding performance demonstrates that Taxpayers have embraced the Tax Dispute Resolution programme, particularly ADR, which continues to gain preference as a method for resolving tax disputes. ADR is a less confrontational alternative to the court system.”
Being a voluntary and participatory process, the tax man adds, alternative ways to sorting disputes allow 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. KRA urges all parties involved in tax disputes to consider ADR as a viable, cost-effective, and efficient resolution mechanism. Additionally, KRA encourages Taxpayers to remain compliant to avoid future disputes.
Dispute resolution framework is one of the measures that contributed, in a big way, to revenue growth for the last financial year. KRA uses the alternative way as a trade facilitation mechanism by ensuring amicable resolution of tax disputes, as opposed to protracted legal processes.
With 970 cases concluded, this far, enabling release of Sh15.296 billion, KRA seems to be on the right path as far as promoting compliance through non-adversarial mechanisms is concerned. It also collected Sh65.09 billion through litigation processes.
Combat corruption
Embracing anti-corruption measures has also been key to the agency’s growth. To combat corruption and seal revenue leakages, KRA has implemented the iWhistle programme, which it says facilitated collection of Sh6.8 billion from 821 cases reported anonymously; profiling of tax evaders and review of refunds and debt management processes.
Internally, it conducts lifestyle audits on staff and runs what its top eggs describe as “robust internal awareness campaigns” to ensure staff uphold integrity in their work. Through the iWhistle, for example, 45 staff integrity cases were reported and action taken.
Customer support programmes aimed at building partnerships and increasing engagements has also ensured the public fully participates in revenue administration measures.
In the fiscal year of 2024/25, KRA held a total of 37 engagements with different sectors, nine sensitisations, 15 public participation sessions and nine roundtables. It says: “These initiatives have played a key role in equipping individuals and other entities with relevant information on taxation.”
Despite the challenging economic environment, taxpayers seem to be resilient as they manage to pay taxes to support the country’s economic transformation – as at June 30, 2025, KRA recorded 79 per cent on-time filing.
Did you know?
KRA commemorated its Pearl Anniversary last month (July). Over the last 30 years, it has grown Kenya’s revenue collection from Sh122.066 billion in 1995 to more than Sh2.5 trillion this year.
