🏠 Introduction: Renting Property in Kenya? Here’s What You Must Know in 2025
As a landlord in Kenya, tax compliance now involves more than just iTax. In 2024, KRA introduced a new system called eRITS (electronic Rental Income Tax System) — specifically for managing rental tax.
This 2025 guide will walk you through everything:
☑️ Tax rates,
☑️ Filing deadlines,
☑️ How to use eRITS,
☑️ Step-by-step iTax filing,
☑️ And how to avoid common penalties.
Let’s make rental tax simple.
🧾 What Is Rental Income Tax in Kenya?
Rental income tax is charged on gross or net income earned from leasing out property. There are two regimes:
| Regime | Applies To | Tax Rate | Filing |
|---|---|---|---|
| Residential Rental Income Tax (RRIT) | Ksh 288K – 15M/year | 10% flat on gross | Monthly |
| Standard Rental Tax | Above 15M/year or on opt-out | Graduated | Quarterly & annually |
💡 What is eRITS and Why Was It Introduced?
eRITS is KRA’s digital system launched to:
- Track rental income more efficiently
- Capture data on all rental properties
- Encourage voluntary disclosure of undeclared rental income
- Monitor compliance by landlords and property managers
🛡️ If you own rental property, you must register it under eRITS, even if you already file on iTax.
🧑💻 How to Register on eRITS (2025)
🪜 Steps to Register on eRITS:
- Visit KRA’s eRITS portal
- Login with your iTax PIN and password
- Provide:
- Your property ownership details
- Location (GIS-supported)
- Rental type (residential/commercial/Airbnb)
- Monthly rent estimate
- Review and submit your eRITS profile
NOTE: Once approved, your details will auto-sync with KRA’s backend monitoring tools.
📉 Benefits of eRITS
- Transparent property profiling
- Streamlined rental tax estimation
- Eligibility for penalty waivers if you voluntarily disclose undeclared rent
- Reduces audit risks if you’re compliant
🧮 Rental Income Tax Calculation (2025)
💸 Under RRIT (10% Flat Rate):
- No expense deductions
- Final tax — no further obligations
- Due by 20th of the next month
Example:
January rent: Ksh 80,000 → Tax = Ksh 8,000 (10%)
💼 Under Standard Rental Regime:
- Taxed at graduated individual/company rates (up to 35%)
- You can deduct:
- Repairs
- Agent fees
- Insurance
- Interest on mortgage
📆 Filing Deadlines for 2025
| Activity | Due Date |
|---|---|
| RRIT Monthly Return | 20th of next month |
| Standard Installment Tax | April, June, Sept, Dec |
| Annual Return | 30th June |
| eRITS Registration | Ongoing – but required ASAP |
🔄 Integration of eRITS and iTax
- eRITS does not replace iTax — it works alongside
- You register and declare properties in eRITS
- You file and pay tax via iTax as usual
- KRA uses eRITS to monitor accuracy of your iTax filings
❌ Common Mistakes Landlords Should Avoid
- ❌ Not registering on eRITS
- ❌ Thinking eRITS replaces iTax
- ❌ Assuming Airbnb and bedsitters are exempt
- ❌ Skipping Nil returns during vacancy
- ❌ Ignoring tax on property held under relatives’ names
⚠️ Penalties for Non-Compliance
- Ksh 2,000 per late return
- 5% of unpaid tax
- 1% monthly interest
- Estimated assessments + audit
- Deactivation of Tax Compliance Certificate (TCC)
📣 Why You Should Act Now
KRA is integrating utility bills, Mpesa records, agents’ declarations, and tenant feedback to estimate your true rental income.
If you don’t register voluntarily, you might:
- Face backdated penalties
- Lose TCC eligibility
- Trigger audits or enforcement action
🧠 FAQs
1. Is registration on eRITS mandatory?
✅ Yes. All landlords must register properties — even if already tax-compliant.
2. Do I still file on iTax after eRITS registration?
✅ Yes. iTax handles payments. eRITS handles property profiling.
3. What if my house is vacant?
Still file a Nil return and update status in eRITS.
4. Can I use eRITS to apply for waivers?
Yes — if you voluntarily disclose past undeclared income via eRITS.
5. Is eRITS linked to agents and counties?
KRA is integrating it with agents’ databases and GIS mapping — full link
🧾 Final Thoughts
Whether you’re managing a one-bedroom bedsitter or a multi-unit estate, compliance is no longer optional.
KRA’s digital tools like eRITS make it easier — but also enforce tighter control.
👉 Take action now:
- Register on eRITS
- File consistently on iTax
- Seek help if unsure
Need help setting up your eRITS or filing correctly? Contact Ushuru.com for landlord support today.