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The Kenya Revenue Authority (KRA) has rolled out a new digital platform aimed at boosting tax compliance among landlords and property owners.
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The newly introduced Electronic Rental Income Tax System (eRITS) will be optional for users.
“eRITS enables smooth integration with KRA’s systems for calculating, filing, and paying taxes. It’s accessible through the Gava Connect API for direct system integration and also available on the eCitizen platform. The goal is to encourage voluntary compliance in the real estate sector while minimizing the administrative challenges of taxation,” said KRA Commissioner General Humphrey Wattanga.
“With this launch, we are advancing toward a future where tax compliance is seen as a collective duty that supports national development,” he added.
Under the current framework, landlords earning between Sh288,000 and Sh15 million per year are taxed under the Monthly Rental Income (MRI) regime, introduced in 2016.
While the MRI tax rate was initially set at 10 percent, it was reduced to 7.5 percent in January of last year.
During the 2023/2024 financial year, revenue collected through MRI reached Sh14.4 billion, marking a 5.2 percent increase from the Sh13.6 billion collected the previous year.
“With eRITS, we’re embracing a more intelligent, streamlined tax system that serves everyone. Our aim is not just to raise revenue, but to foster a fair and consistent tax environment that supports both taxpayers and government operations,” said National Treasury Principal Secretary Chris Kiptoo.
