The Collaborative International Dictionary of English v.0.48:

Kafkaesque \Kafkaesque\ prop. a. [fr. Franz Kafka, novelist;
   especially from his novels such as "The Trial".]
   Frightening, threating, and bewildering in a vague and
   unexplicable way; -- of situations or regulations. Often used
   to describe illogical bureaucratic entanglements with no
   reasonable solution.
   [WordNet 1.5]

WordNet (r) 3.0 (2006):

Kafkaesque
    adj 1: relating to or in the manner of Franz Kafka or his
           writings
    2: characterized by surreal distortion and a sense of impending
       danger; "the kafkaesque terror of the endless interrogations"