Get breaking business news on WhatsApp
The Kenya Revenue Authority is running compliance checks on more than one million property owners to see whether the rental income they declare matches the information in its records, KRA told the National Assembly’s Departmental Committee on Finance and National Planning on Wednesday, October 28, 2026, Tuko reported. KRA rental income tax enforcement now uses digital tools to compare property data with landlords’ filings.
What KRA is doing
KRA said it is cross-checking property information against rental income declarations to find landlords who collect rent but do not file, or who under-declare. The review comes as the Treasury cuts its revenue targets after collections fell short: ordinary revenue was KSh58.2 billion below target by September, The Star reported on October 30.
Being flagged does not mean a landlord owes tax. KRA’s published guidance says that where gaps lead to a tax liability, the taxpayer is informed orally and in writing and asked to respond before any assessment or demand is issued. A landlord who disagrees with an assessment can file an objection and then appeal to the Tax Appeals Tribunal.
KRA rental income tax rules for landlords
| Item | Rule |
|---|---|
| Who pays monthly rental income tax | Resident individuals and companies earning residential rent of KSh288,000 to KSh15 million a year |
| Rate | 7.5% of gross rent, with no deductions for expenses |
| Deadline | Return and payment by the 20th of the following month, on iTax |
| Below KSh288,000 a year | Exempt from monthly rental income tax |
| Above KSh15 million or commercial property | Declared under normal income tax, with expenses deductible |
Our step-by-step guide to filing rental income tax on iTax covers the monthly return, nil returns for vacant months and payment by M-Pesa.
What landlords should check now
- Compare filings with actual rent: use tenancy agreements and rent-payment records, including M-Pesa and bank statements.
- Vacant periods: keep evidence of months when units were empty, since they produce no rent.
- Ownership changes: sold or inherited property may still be linked to your PIN.
- Agents: if a property agent collects rent, make sure their statements match your returns.
- Catch up voluntarily: filing missed months before KRA writes to you usually costs less than waiting for an assessment with penalties and interest. KRA also offers payment plans.
Short-stay hosts and diaspora owners
Airbnb and other short-stay hosts are also in scope. Income from furnished short-term lets is generally treated differently from long-term residential rent, and hosts may also face county permit fees and tourism levies; see our guide to Airbnb tax in Kenya. Kenyans living abroad who rent out property at home remain liable, and non-resident landlords are taxed under separate withholding rules, so agents who collect rent for them should keep clear records. Landlords dealing with tenants who stop paying should follow the legal process rather than self-help evictions; our guide to landlord eviction in Kenya sets out the steps.
KRA has not said when letters to flagged landlords will go out or how many have already been contacted.
Wider tax push
The landlord checks are part of a broader effort to widen the tax base. KRA has also been acting against VAT fraud through its missing trader list and pursuing other sectors; hotels and restaurants should read our explainer on service charge tax.
FAQ
What is the rental income tax rate in Kenya?
7.5% of gross monthly rent for residential landlords earning KSh288,000 to KSh15 million a year.
Do I pay rental income tax if I earn below KSh288,000 a year?
No. Residential rent below KSh288,000 a year is exempt from monthly rental income tax.
What happens if KRA flags my rental income?
KRA must notify you orally and in writing and let you respond before it issues an assessment. You can object and appeal if you disagree.
Updated October 31, 2026.
Prefer WhatsApp? Follow Business Radar on WhatsApp
Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.
