Sh87b collected through tax dispute resolution program
Business
By
Sharon Wanga
| Jul 29, 2025
Times Towers Building housing Kenya Revenue Authority pictured during KRA Tax Payers Month Launch and Openning of Customer Service week in Nairobi on Monday, Oct 1, 2018. [Jonah Onyango, Standard]
The Kenya Revenue Authority (KRA) collected Sh86.5 billion in the last financial year through its Tax Dispute Resolution program.
Paul Mutuku, Commissioner for Legal and Board Services, attributed the gains to the effective use of alternative dispute resolution (ADR) mechanisms.
“The Authority utilises independent review of objections, their Alternative Dispute Resolution (ADR) mechanism and litigation, resulting in significantly enhanced revenue collection,” said Mutuku in a statement dated Tuesday.
Of the total amount, Sh18.9 billion was collected through ADR, while Sh67.6 billion resulted from at least 2,389 successful litigation cases.
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As part of its dispute resolution framework, the Authority conducted independent reviews for 3,594 objection cases, aimed to prevent escalation into court processes, which are often lengthy and costly.
KRA also resolved 1,152 cases through ADR.
Mutuku said the figures indicate growing acceptance of ADR among taxpayers as a preferred method for resolving disputes.
“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,” he said.
KRA has urged taxpayers involved in disputes to consider ADR as a viable and efficient resolution tool and encouraged continued tax compliance to avoid future conflicts.
The performance comes as KRA surpassed its annual revenue target, collecting Sh2.572 trillion against a target of Sh2.555 trillion.
According to the tax agency, the growth was driven by improved economic indicators, including a stronger shilling, lower inflation, and falling oil prices, factors that helped offset the impact of global tariff wars and high lending rates.
“The exchange rate of the Kenya shilling against the US dollar strengthened to an average of Sh129.35 during the year, from Sh144.1 previously,” it noted.