The Kenyan Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS) to streamline the process of monthly rental income tax collection.
The goal of the new system is to foster voluntary compliance among landlords and property owners as well as address the gap in the country’s rental income tax outlay in a technological manner.
About Kenya’s Monthly Rental Income Tax
Introduced in 2016, the Monthly Rental Income (MRI) is applicable to landlords earning between Ksh 288,000 and Ksh 15 million annually.
The MRI tax rate was reduced from 10% to 7.5%, from 1st January 2024, demonstrating the Government’s commitment to easing the burden on taxation among taxpayers.
In the last financial year 2023/2024, tax revenues collected through MRI stood at Ksh 14.4 billion, translating to a 5.2% year on year growth compared to a collection of Ksh 13.6 billion and Ksh 12.3 billion in the previous financial years.
What This Means
Speaking during the launch of the system, Kenya’s National Treasury Principal Secretary (PS) Dr. Chris Kiptoo hailed the launch of the new system as a significant milestone in the Government’s commitment to ensuring a fair and efficient tax system that will contribute to national development.
“The government is committed to ensuring that the tax system remains fair, and that compliance is as seamless as possible. With eRITS, we are moving towards a smarter, more efficient tax system that benefits everyone,” he said.
He also urged landlords to embrace the eRITS platform and comply with rental income tax regulations, emphasizing that the initiative goes beyond revenue collection — it’s about nation-building.
Housing Secretary of the State Department of Housing and Urban Development, Athman Said noted that with this initiative that the real estate sector is now poised to be a major contributor to Kenya’s overall development through tax revenue.
