KRA ADR: How to Settle a Tax Dispute Without Going to the Tribunal

Updated 7 November 2026

If you disagree with a KRA tax assessment, going to the Tax Appeals Tribunal or the courts is not the only option. KRA ADR (alternative dispute resolution) is a facilitated, mediation-style process in which you and the Commissioner try to settle the dispute through structured discussion, with a facilitator. This guide explains which disputes qualify, how long ADR takes, what is expected of you and how to apply, based on KRA’s own ADR pages.

Sources: KRA’s Alternative Dispute Resolution pages, About ADR, Disputes eligible for ADR, Why ADR and The ADR Framework, read on 7 November 2026. This is general information, not legal advice; complex disputes may need a tax adviser.

What KRA ADR is

Under the Tax Procedures Act, 2015, a tax dispute starts when a taxpayer objects to a decision by the Commissioner and can end in an appeal to the Tax Appeals Tribunal or the courts. KRA’s ADR Framework adds a further route outside those judicial and quasi-judicial processes.

KRA describes ADR as voluntary, participatory and facilitated. It is mediation, not arbitration: the facilitator cannot impose a decision. Instead, the taxpayer and the Commissioner are helped to find a solution both accept. KRA says the process is confidential and is conducted on a “without prejudice” basis, so things said in ADR talks are meant to stay within them.

Which disputes qualify for KRA ADR

KRA says all tax disputes can go to ADR except where:

• a settlement would be contrary to the Constitution, the revenue laws or other enabling legislation;
• the matter turns on a technical interpretation of the law;
• it is in the public interest to get judicial clarification of the issue;
• there are undisputed judgments or rulings on the matter;
• one of the parties is unwilling to take part.

In practice, disputes about facts, such as whether expenses were incurred, how income was calculated or whether documents support a claim, are the most natural fit. Disputes that depend on what a section of a tax law means are more likely to need the Tribunal or a court.

KRA ADR timeline

KRA gives two timelines:

• 120 days, as provided under Section 55 of the Tax Procedures Act;
• court-initiated ADR, where the timeline depends on what the court grants.

KRA presents ADR as a way to cut the delays and rising costs of litigation and to reduce case backlogs.

Who takes part and what is expected

An ADR process has three parties: the taxpayer, the Commissioner and a facilitator. KRA expects all parties to:

• keep proper decorum and confidentiality;
• take part fairly, openly and diligently;
• fully disclose all material facts relevant to the dispute;
• attend every scheduled ADR meeting;
• stick to agreed timelines.

Full disclosure matters. If you hold back documents, the discussion is unlikely to settle anything, and the dispute will simply move to the next stage.

How to apply for KRA ADR

1. Download the ADR application form from KRA’s “Apply for ADR” page.
2. Complete it in full and attach all supporting documents, such as the assessment, your objection, the Commissioner’s decision and the evidence you rely on.
3. Submit the form and attachments to the Tax Dispute Resolution Office, Ushuru Pension Towers, Block B, 7th Floor, P.O. Box 48240–00100, Nairobi.

If you have not yet objected to an assessment, start with our guide on how to object to a KRA assessment on iTax. For the limits on KRA’s powers, see what KRA can and cannot do.

How to prepare for a KRA ADR meeting

Because ADR depends on full disclosure and agreed timelines, preparation decides most outcomes. Before the first meeting:

• put together a short written summary of the dispute: the tax period, the amount KRA assessed, the amount you accept and why you dispute the rest;
• organise your evidence by issue (invoices, bank statements, contracts and eTIMS records) so that each disputed item can be matched with its documents;
• decide in advance who will attend for you and make sure they have authority to agree a settlement;
• work out which points you could concede and which you cannot, since mediation usually ends in a compromise;
• note every agreed deadline and meet it, because missed timelines are one of the expectations KRA lists.

If talks fail, the dispute can still continue through the formal process, so keep your documents in order either way.

KRA ADR vs the Tax Appeals Tribunal

KRA lists other benefits: ADR preserves the relationship between taxpayer and KRA, removes uncertainty about court or tribunal outcomes, and improves compliance because parties are more likely to honour outcomes they agreed to. It also notes that the Constitution encourages ADR.

Frequently asked questions

How long does KRA ADR take?

KRA cites 120 days under Section 55 of the Tax Procedures Act. For court-initiated ADR, the court sets the timeline.

Can KRA ADR impose a decision on me?

No. KRA says the facilitator cannot impose an outcome; settlement needs both sides to agree.

Which disputes cannot go to KRA ADR?

Those where settlement would breach the law, that turn on technical legal interpretation, need judicial clarification, already have undisputed rulings, or where a party refuses to take part.

Where do I submit a KRA ADR application?

To the Tax Dispute Resolution Office at Ushuru Pension Towers, Block B, 7th Floor, Nairobi.