The Kenya Revenue Authority – KRA has launched the Electronic Rental Income Tax System [eRITS] to improve tax compliance among landlords and property owners. Built on KRA’s Enterprise Integration Platform, Gava Connect, eRITS aims to streamline rental tax processes through seamless integration and automation.
eRITS allows property owners and agents to compute, file, and pay rental income tax efficiently. It is accessible via the Gava Connect API for system-to-system integration and also through the eCitizen platform. This move supports voluntary compliance while reducing the administrative load on taxpayers.
Speaking during the launch, National Treasury Principal Secretary Dr. Chris Kiptoo emphasized the government’s dedication to a fair and efficient tax system. He noted that eRITS is part of the push for smarter tax solutions that benefit both citizens and the government.
Housing Secretary Athman Said highlighted that the real estate sector will now play a more significant role in national development through enhanced tax contributions. KRA Commissioner General Humphrey Wattanga reinforced that eRITS reflects KRA’s commitment to service excellence, efficiency, and continuous improvement.
The Monthly Rental Income [MRI] tax, introduced in 2016, applies to landlords earning between KES 288,000 and KES 15 million annually. In January 2024, the MRI tax rate was reduced from 10% to 7.5%, easing the burden on taxpayers.
In the 2023/2024 financial year, KRA collected KES 14.4 billion from MRI, reflecting a 5.2% increase from the previous year. This launch marks a key step in modernizing Kenya’s tax system and fostering a shared responsibility in nation-building.
