Learn About ADR

Alternative Dispute Resolution (ADR) Overview

Alternative Dispute Resolution (ADR) provides taxpayers and the Kenya Revenue Authority (KRA) an opportunity to resolve tax disputes amicably without resorting to lengthy litigation. It promotes dialogue, reduces case backlog, and encourages voluntary compliance through consensus.

Tax Disputes Eligible for ADR

All tax disputes can be resolved through ADR with the following exceptions:

  • The settlement would be contrary to the Constitution, the revenue laws, or any other enabling legislation.
  • The matter borders on a technical interpretation of law.
  • It is in the public interest to have judicial clarification of the issue.
  • There are undisputed judgments or rulings on the matter.
  • One of the parties is unwilling to engage in the ADR process.

ADR Timelines

  • 120 days — as provided under Section 55 of the Tax Procedures Act (TPA).
  • Court-initiated ADR — dependent on the timelines granted by the court.