KRA Proposes Mandatory Registration for Landlords on Digital Tax System
The Kenya Revenue Authority (KRA) is planning to make it compulsory for landlords to register their rental properties on its Electronic Rental Income Tax System, known as eRITS.
This requirement would apply to owners earning residential rental income that falls under tax rules. The proposal appears in newly published draft regulations aimed at improving how rental earnings are reported and taxed.
Currently, many landlords declare their income through the general iTax platform on a voluntary basis. The new rules would shift to mandatory registration and filing specifically on eRITS. This change seeks to address gaps in compliance and bring more transparency to the rental sector. Landlords would need to provide property details and file monthly returns, paying tax based on gross rental income.
The authority hopes the move will significantly increase revenue from this category. Collections from residential rental income currently stand at around Sh14 billion per year. KRA aims to raise this figure to as much as Sh80 billion annually by reducing under-reporting and reaching more property owners across the country.
Public input on the draft Income Tax (Residential Rental Income Tax) Regulations 2026 is being sought before final decisions are made. If approved, the mandatory system could affect hundreds of thousands of landlords. The plan forms part of broader government efforts to widen the tax base through digital tools and ensure fair contribution from all sectors of the economy. Landlords are encouraged to review the proposals and prepare for possible changes in how they manage their tax obligations.
