The Kenya Revenue Authority (KRA) has more than doubled revenue collected through its Alternative Dispute Resolution (ADR) programme, reaching Sh35.06 billion in the financial year ending June 2026.
The authority resolved 993 tax disputes during the period, compared with 97 cases in the previous financial year, resulting in a 129.2 per cent increase from the Sh15.3 billion collected previously.
KRA Commissioner General Adan Mohamed said the ADR mechanism had become an important tool in resolving tax disputes without lengthy court battles.
“The ADR programme provides a faster and more efficient way of resolving tax disputes through engagement between taxpayers and KRA,” Mohamed said.
The programme allows taxpayers and the authority to negotiate settlements instead of taking disputes through the Tax Appeals Tribunal or the courts, which can take years to conclude.
Despite the improvement, the latest collections remain below the Sh60.47 billion recorded in the 2023/24 financial year and the Sh71.84 billion collected in 2022/23.
The average revenue recovered per resolved case dropped to about Sh35 million, suggesting that most of the disputes settled involved smaller tax amounts.
KRA said it is continuing to strengthen compliance through technology, including electronic invoicing, data-sharing systems and transaction monitoring tools.
The authority added that ADR has contributed to efforts to recover outstanding tax debts, which have reached Sh144.82 billion.
