Rental income tax in Kenya: MRI rate, who pays and how to file

MRI in one paragraph

Resident landlords earning KES 288,000 to KES 15 million a year from residential rent pay 7.5% of gross rent each month. It is a final tax, with no deduction for expenses. A proposal in the Finance Bill 2026 to raise it to 10% was not adopted in what KRA has published, so check KRA before relying on this.

Example

Monthly rent of KES 100,000 gives KES 7,500 of tax, due by the 20th of the next month on iTax. Run yours in the rental income tax calculator.

Who is outside MRI

• Commercial rent, which goes on your normal annual return.
• Landlords below KES 288,000 or above KES 15 million a year.
• Non-resident landlords, who from 1 July 2026 self-declare and pay 30% of gross rent.

When normal tax can be cheaper

If your expenses and interest are high, tax on rent less expenses can be lower than 7.5% of gross. Compare using the calculator, but remember the filing deadlines and record-keeping that the normal route needs. If you later sell the property, see the capital gains tax calculator. Landlords paying agents or contractors should also read the withholding tax guide.

General information only, not tax advice. Rates and rules were checked in October 2026 and can change. Confirm with KRA or a qualified professional.

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