In keeping with the spirit of the Constitution as enshrined in Article 159 (2) (c), the KRA, Tax Appeals Tribunal (TAT) and the Courts encourage alternative forms of dispute resolution where cases can be resolved amicably.

The prominence given to the Alternative Dispute Resolution (“ADR”) has resulted in the Kenya Revenue Authority (“KRA”) setting up the Corporate Tax Dispute Resolution Division (“CTDRD”) who oversee the implementation of the ADR Framework in tax disputes.

The division is meant to promote the overriding objectives of dispute resolution mechanisms by facilitating a process that is just, expeditious, proportionate, and affordable.  It is in line with these objectives that a taxpayer has the chance to engage the KRA through ADR before the confirmation of an assessment, before filing of a case at the TAT or Court and when a case is pending/ongoing before the TAT or a Court of law. 

The ADR process may be initiated by either of the parties as it is considered a voluntary process. The process should be completed within ninety days from commencement of the ADR process.