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Tax & compliance

Rental income tax in 2026: what Kenyan landlords need to know

The rate, the threshold, the 20th-of-the-month deadline, and the move to eRITS — in one place, without the jargon.

Hodi team·6 Oct 2026 · 6 min read

If you are a resident landlord collecting between KES 288,000 and KES 15 million a year in residential rent, you fall under Monthly Rental Income tax (MRI). 2026 changed how that tax is filed, and introduced a separate regime for landlords living abroad. Here is what applies to you.

The rate, and who it covers

MRI is a flat, final tax of 7.5% on gross residential rent. You pay on what tenants pay you, not on profit — repairs, agent fees and loan interest cannot be deducted.

  • Below KES 288,000 a year (KES 24,000 a month): outside MRI.
  • KES 288,000 to KES 15 million a year: 7.5% of gross rent, filed monthly.
  • Above KES 15 million: normal income tax, with expenses deductible.
  • Mixed-use buildings: MRI applies only to the residential portion, so keep residential and commercial rent separate.

When it is due

The return and payment are due on or before the 20th of the month after you received the rent. Rent received in September is declared and paid by 20 October. There is no deferral to year-end.

Late paymentPaying late attracts a 5% penalty on the unpaid tax, plus 1% interest per month until it is cleared. A missed month compounds quickly.

Registering on eRITS

KRA is moving residential landlords from iTax onto the Electronic Rental Income Tax System (eRITS). Registration is per property, not just per landlord — so each building that earns above the threshold needs its own record.

Rate watchThe Finance Bill 2026 proposed raising the resident rate to 10%. KRA guidance issued on 25 September 2026 still describes resident landlords as generally paying 7.5%. Confirm the rate in force for the month you are filing.

Where Hodi fits

Your MRI figure starts with one number: gross residential rent received in the month. Hodi's monthly statement gives you exactly that, per property, built from reconciled M-Pesa payments rather than memory.

General information, not tax advice. Rules and rates change — confirm with KRA or a registered tax agent before filing. Last reviewed 6 Oct 2026.