KRA Moves to Register All Landlords as Rental Tax Gap Widens
Written on
Kenya’s tax authority is preparing to force all landlords onto a digital register in a sweeping compliance push. The move targets billions in uncollected rental income and could reshape how property owners report earnings
The Kenya Revenue Authority (KRA) is planning to require all residential landlords to register on a centralized digital tax system as part of efforts to close a major rental income tax gap in the country. The proposal comes amid estimates that billions of shillings in rental income remain uncollected each year despite existing voluntary compliance systems.
Under the draft regulations, landlords earning within the residential rental income tax bracket would be required to enroll on the Electronic Rental Income Tax System (eRITS), which is designed to improve tracking and reporting of rental earnings. Authorities argue that voluntary registration has failed to capture a large share of the sector.
The policy shift is expected to strengthen enforcement while expanding Kenya’s tax base, particularly in urban areas where underreporting is widespread. If implemented, it could also increase administrative pressure on small and mid-sized property owners to formalize their rental operations.
Further details on implementation timelines and compliance thresholds are expected as the draft regulations move through the public consultation process.