Resident landlords who earn residential rent in Kenya can pay tax under KRA’s simplified Monthly Rental Income (MRI) regime. KRA charges MRI at 7.5% of gross rent, with no deductions for expenses, and it is a final tax. Enter your monthly gross residential rent to see the tax.
Who MRI applies to
MRI applies to resident persons (individuals or companies) with residential rental income above KES 288,000 and up to KES 15 million in a year. Landlords earning more than KES 15 million a year declare the rental income with their other income in the annual return instead. A landlord can also elect, in writing to the Commissioner, not to be taxed under MRI and to use the annual regime.
MRI does not cover commercial property, non-resident landlords or landlords above the KES 15 million threshold. From 1 July 2026, the Finance Act, 2026 introduced a separate non-resident rental income tax for non-residents; this calculator does not cover it.
How the tax is worked out
MRI is 7.5% of the gross rent received. Expenses, losses and capital deductions are not allowed. For example, monthly rent of KES 60,000 gives MRI of KES 4,500 for that month, or KES 54,000 over a year in which you collect KES 720,000.
Filing and payment
MRI is filed and paid monthly on iTax. Since July 2023, KRA can also appoint rental income tax agents to deduct the tax at 7.5% and remit it within five working days. Check your own obligations on iTax or with KRA.
Note: the Finance Bill, 2026 proposed raising the rate to 10%. KRA’s rental income page still states 7.5%, and the Finance Act, 2026 summary published by KRA lists no change to the residential rate, so this calculator uses 7.5%.
Frequently asked questions
What is the rental income tax rate in Kenya?
7.5% of gross residential rent under MRI, effective 1 January 2024, per KRA.
Can I deduct expenses from rental income under MRI?
No. MRI is charged on gross rent and no expenses, losses or capital deductions are allowed.
Who does not qualify for MRI?
Landlords with residential rent of KES 288,000 or less, or more than KES 15 million, in a year; non-resident landlords; and commercial property income.
Is MRI a final tax?
Yes. KRA describes it as a final tax on the gross rent.
Related: PAYE & net salary calculator · SHIF calculator · NSSF calculator · Housing Levy calculator · Bank loan calculators
Sources
- KRA – Rental Income Tax (checked 13 October 2026)
- KRA – Finance Act 2026: What It Means for You (checked 13 October 2026)
