Grounded under Section 55 of the Tax Procedures Act and Article 159(2)(c) of the Constitution, ADR provides a collaborative, confidential, and cost-effective framework designed to settle tax disputes through structured negotiation and mediation.
To initiate the out-of-court process, a taxpayer is required to file a formal application using the prescribed ADR application form, attaching all relevant supporting documentation—such as assessment notices, objections, financial statements, and eTIMS records.
Applications can be submitted physically to the Tax Dispute Resolution Office or via email to KRA's dedicated ADR portal.
Once accepted, the Commissioner appoints a neutral facilitator to guide discussions between the taxpayer and tax officials.
The process aims to reach a mutually agreeable resolution within statutory timelines, typically concluding within 120 days.
KRA notes that ADR can be initiated at multiple stages, including while a tax objection is pending or even after an appeal has been filed before the Tax Appeals Tribunal or formal courts, provided both parties consent.
Once a consensus is reached, a binding settlement agreement is signed, updating the ledger balances accordingly and helping businesses avoid frozen management time, heavy legal fees, and prolonged litigation.
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https://peopledaily.digital/business/kra-explains-how-kenyans-can-solve-tax-disputes-without-going-to-court
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