From the Kestrel website:
Let's assume you know your altitude.
Scroll through the Kestrel meter to the Baro screen. It is here where you will adjust your 'reference altitude'.
Kestrel 3500 and below: Push the 2 outer buttons to adjust
Kestrel 4000 and above: Push the middle button, go to reference alt and move arrows left and right
Now, read the barometric pressure it gives you. That will be your reference pressure. Go to the Alt screen, and adjust the Reference Baro (Ref Baro) doing it the same way as above.
As you are doing that, you will notice that the altitude reading will change as your reference pressure changes. When you are finished, press the center button to exit the adjustment mode.
To adjust the barometric pressure first, first you will need to obtain your altitude from a topographical map, landmark or the Internet. Once you have that number, scroll to the "Baro" screen which is your urrent Barometric Pressure on your Kestrel. Once there, press the center button to enter the adjustment mode.
Again, use the left and right arrows to adjust the reference altitude. Again, you will notice that the Barometric Pressure will change with changes in the reference altitude. When you are done, press the center button to exit the adjustment mode.