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Kenya rental income tax calculator

Calculate the 7.5% Monthly Rental Income tax (MRI) on Kenyan residential rent. Final tax, paid monthly to KRA, no expense deductions allowed.

KES

Sum of all gross rent collected.

Result

Monthly tax (7.5%)

KES 3,750

Net monthly rent

KES 46,250

Annual tax

KES 45,000

Annual gross rent

KES 600,000

How rental income tax works in Kenya

For Kenyan residents earning gross rental income above KES 24,000 per month and below KES 15M per year on residential property, the Monthly Rental Income (MRI) regime applies. The tax is a flat 7.5% on gross rent, with no deductions for expenses, mortgage interest, or repairs. It is a final tax, you do not include this rent in your annual income tax return.

When MRI does not apply

  • Commercial property rental (taxed under standard income tax with deductions)
  • Annual rental income exceeding KES 15M (taxed under standard income tax)
  • Non-resident landlords (different withholding regime)
  • Joint ventures or company-owned property (corporate tax applies)

How to file MRI

  1. Register for MRI on iTax (one-off)
  2. File a Monthly Rental Income return on iTax by the 20th of the following month
  3. Pay via KRA paybill 572572, account format depends on your KRA registration
  4. Keep records of rent receipts for KRA spot checks

Frequently asked

Can I deduct mortgage interest from rental income?

No. MRI is a final tax on gross rent; no deductions are allowed under this regime. If you want to deduct expenses, opt out of MRI and file under standard income tax (irrevocable election).

What if my property is vacant some months?

You only pay MRI on rent actually received. A vacant month means zero rent and zero MRI for that month. File a nil return on iTax for the vacant months.

Do I pay MRI if I am a non-resident?

No. Non-resident landlords are subject to a 30% withholding tax on gross rent, deducted by the tenant or letting agent. Different regime, different rate.

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