Monthly Rental Income (MRI) tax in Kenya: rate, deadline and how to file

Who pays MRI

• Resident individuals, partnerships and companies that earn residential rent.
• Gross residential rent between KES 288,000 and KES 15,000,000 a year.
• Below or above that band, or for commercial rent, the normal income tax rules apply instead.
• Non-resident landlords are taxed differently: KRA lists withholding tax at 30% of gross rent.

How to work it out

Add up the rent actually received in the month, not the rent invoiced, and multiply by 7.5%. No expenses, repairs or losses are deducted. For example, KES 120,000 received in March means KES 9,000 MRI, due by 20 April.

Keep a monthly record of rent received per property. It makes the return quick and is your evidence if KRA asks.

How to file and pay

1. File the MRI return for the month on KRA's rental income portal (eRITS) or iTax.
2. Generate the payment slip and pay by M-Pesa or bank by the 20th of the following month.
3. Keep the acknowledgement and payment reference with your monthly records.

Opting out

Eligible landlords may opt out of MRI in writing and instead declare rental income in the annual return, where expenses can be deducted. Talk to a tax adviser before choosing, and check KRA's current guidance, as rates and bands are reviewed in Finance Acts.

How RumiaRent helps

RumiaRent adds up the rent you actually received each month from the payments it recorded, shows the MRI figure and the deadline, and lets you note when you filed. It does not file with KRA for you. This guide is general information, not tax advice.