Who pays
- Resident individuals and companies earning rent from residential property.
- Annual rent above about KES 280,000 and not more than KES 15 million.
- Above KES 15 million, you declare rent with your other income in the annual return instead.
- You can elect in writing to use the annual income tax regime instead of the monthly one.
- Commercial rent is not covered by the 7.5% monthly regime.
The lower limit KRA quotes is KES 280,000. KRA's draft 2026 rental income regulations propose KES 288,000, but they were still a draft as of October 2026.
Working it out
| Monthly rent collected | Tax at 7.5% | Annual tax |
|---|---|---|
| KES 30,000 | KES 2,250 | KES 27,000 |
| KES 100,000 | KES 7,500 | KES 90,000 |
| KES 500,000 | KES 37,500 | KES 450,000 |
Tax is on the rent you actually received that month, not the rent due. Try your own figures in the rental income tax calculator.
Registering and paying on eRITS
- Open erits.kra.go.ke, or reach it through eCitizen.
- Register each rental property you own.
- Each month, file the rent received for each property, or a nil return if there was none.
- Pay the tax by the 20th using the payment reference the system gives you. KRA payments by M-PESA go through the eCitizen paybill 222222 with that reference as the account number.
KRA launched eRITS in September 2025 to make it easier to manage properties and pay monthly rental income tax (KRA notice). For help, KRA lists callcentre@kra.go.ke and 0711 099 999, including WhatsApp. More on paying KRA in how to pay KRA via M-PESA.
Penalties
| Penalty | |
|---|---|
| Late filing, individuals | KES 2,000 or 5% of the tax due, whichever is higher |
| Late filing, companies | KES 20,000 or 5% of the tax due, whichever is higher |
| Late payment | 5% of the tax due |
| Interest | 1% a month or part of a month |
When a tenant withholds tax from your rent
- Appointed rental income tax agents, such as some companies and agencies, deduct 7.5% from the rent and must remit it to KRA within 5 working days.
- KRA's withholding tax table lists 10% on rent of buildings paid to residents and 30% to non-residents.
- Ask the tenant for the withholding certificate each time, so the tax already paid counts in your favour.
Related
- Turnover tax vs rental income tax vs income tax
- Collecting rent by M-PESA
- Short-stay and Airbnb hosts: the 2% tourism levy