The effects of spin-orbit scattering of conduction electrons in the Kondo regime are investigated theoretically. It is shown that due to time-reversal symmetry, spin-orbit scattering does not suppress the Kondo effect, even though it breaks spin-rotational symmetry, in full agreement with experiment. An orbital magnetic field, which breaks time-reversal symmetry, leads to an effective Zeeman splitting, which can be probed in transport measurements. It is shown that, similar to weak-localization, this effect has anomalous magnetic field and temperature dependence.

10 pages, RevTex, one postscript figure available on request from meir@sbphy.physics.ucsb.edu