KRA Proposes Mandatory Registration for Landlords in New Tax Rules 

Kenyans with residential rental property may soon be required to register their properties on the Electronic Rental Income Tax System (eRITS) if fresh proposals by the Kenya Revenue Authority (KRA) are adopted.

As proposed in the Draft Income Tax (Residential Rental Income Tax) Regulations, 2026, landlords earning between Ksh288,000 and Ksh15 million annually from residential property will be required to register on an electronic platform prescribed by the Commissioner. 

The proposed rules will apply to resident individuals earning rental income within the specified thresholds, as well as partnerships that own residential rental property. 

“A person with income chargeable to residential rental income tax shall register such property in an electronic system prescribed by the Commissioner,” read the statement in part.

The proposed regulations also introduce stricter compliance requirements for landlords. 

For instance, landlords will be required to maintain proper records necessary for determining their tax obligations.

Also Read: Becoming a Landlord in Nairobi Without Owning Land: Lease Model vs Joint Venture

Additionally, landlords must file monthly returns and remit the tax due by the 20th day of the month following receipt of rent.

“For purposes of obtaining full information in respect of accounting for residential rental income tax under these Regulations, the Commissioner may by notice require any person to produce books and records relating to the computation of the tax,” read the statement in part.

“The Commissioner may also require a person to appear at such time and place as may be specified in the notice and update property details in the electronic system prescribed by the Commissioner.”

The push for mandatory registration comes against the backdrop of underperformance in rental income tax collections. 

Landlords pay a tax at a rate of 7.5% on the gross rent received, and it is considered a final tax. No expenses are deducted in the computation of the tax.

In September 2025, KRA rolled out eRITS to facilitate the collection of taxes on the Monthly Rental Income (MRI). 

Also Read: Becoming a Landlord in Nairobi Without Owning Land: Leasing to Build Rentals 

KRA’s move to enforce mandatory registration on eRITS aligns with KRA’s push for tax compliance.

Recent reforms have included the rollout of electronic invoicing systems for businesses, including busy areas like Eastleigh. KRA has also been validating expenses that are claimed by taxpayers when filing returns.

KRA is also proposing VAT reforms that will see businesses including kiosks, registered as VAT agents.