Rental income tax in Kenya: a plain guide for landlords

If you earn rent from a home in Kenya, the Kenya Revenue Authority (KRA) expects tax on it. Most individual landlords pay Monthly Rental Income (MRI) tax, a simple tax on the rent you collect, filed and paid every month on iTax.

The basics (check kra.go.ke for the current rules before you file): - MRI applies to residential rent when your rental income for the year is between KES 288,000 and KES 15 million. - The rate is 7.5% of the gross rent you received in the month. Expenses are not deducted. - File and pay by the 20th of the following month on iTax. Rent received in October is due by 20 November. - If you received no rent in a month, file a nil return. - Rent from offices, shops and warehouses is taxed differently, and companies that rent from you may withhold 10% and give you a withholding certificate.

The hard part is usually the record: knowing exactly how much rent you received each month. Keep every receipt and M-Pesa code, and count rent in the month you received it.

Dami keeps that record for you. Its rental income tax sheet adds up the rent you confirmed each month, works out the tax at the current rate and shows when it is due, so filing on iTax takes a few minutes. Ask your accountant or KRA if your situation is not simple.