KRA Headquarters, Times Towers Building, Nairobi. Photo | courtesy.
The Kenya Revenue Authority (KRA) has launched a new digital system, the Electronic Rental Income Tax System (eRITS) aimed at enhancing voluntary tax compliance among landlords and property owners across the country.
The eRITS platform, built on KRA’s Gava Connect Enterprise Integration Platform, is designed to simplify the process of tax computation, filing, and payment for rental income.
It is accessible via the Gava Connect API and the eCitizen platform, offering a seamless integration with KRA’s digital ecosystem.
ALSO READ: KenInvest Unveils Strategy To Revitalize Investment In Kenya
Speaking during the launch , Principal Secretary to the National Treasury, Dr. Chris Kiptoo, termed the unveiling of the system a significant milestone that reinforces the Government’s dedication to a fair and efficient tax regime that supports national development.
“The government is committed to ensuring that the tax system remains fair and that compliance is as seamless as possible. With eRITS, we are moving towards a smarter, more efficient tax system that benefits everyone,” said Dr. Kiptoo.
He added that the new platform not only boosts revenue collection but also promotes equity and predictability in the tax environment.
KRA Commissioner General, Humphrey Wattanga, described eRITS as a voluntary compliance tool that supports rental property owners and agents in meeting their tax obligations efficiently.
“This reflects KRA’s commitment to service excellence, efficiency, and continuous improvement,” he said.
Wattanga emphasized that the initiative aims to reduce administrative burdens while encouraging taxpayers to embrace taxation as a shared responsibility for national growth.
“We are taking a bold step toward a future where tax compliance is not a burden,” he said.
Introduced in 2016, the Monthly Rental Income (MRI) tax applies to landlords earning between Sh288,000 and Sh15 million annually.
The MRI tax rate was revised from 10 percent to 7.5 percent, effective January 1, 2024, in a move aimed at making compliance more appealing.
According to KRA, rental tax collections in the 2023/2024 financial year stood at Sh14.4 billion, marking a 5.2 percent increase from the previous year’s Sh13.6 billion and Sh12.3 billion the year before.
