Landlord Tax in Kenya: Monthly Rental Income (MRI)
Updated 3 November 2026 · Land & Property editorial team
As of November 2026, the Kenya Revenue Authority says resident landlords who earn between KES 280,000 and KES 15 million a year in residential rent pay Monthly Rental Income tax at 7.5% of gross rent, with no deductions. The tax is declared and paid by the 20th of the following month through iTax. Commercial rent and non-resident landlords fall outside MRI.
- MRI rate (KRA page, Nov 2026)
- 7.5% of gross rent, from 1 January 2024
- Annual rent band
- KES 280,000 to KES 15,000,000
- Due date
- 20th of the month after the rent is received
- Late filing penalty
- KES 2,000 or 5% of tax, whichever is higher (individuals)
How much tax do landlords pay in Kenya?
Kenya taxes eligible residential rent through Monthly Rental Income tax, usually shortened to MRI. The Kenya Revenue Authority (KRA) page on residential rental income states that the rate is 7.5%, effective 1 January 2024, applied to the gross rent. It is a final tax. That means you cannot subtract repairs, loan interest, agent fees or other costs, and you do not add the rent to your other income for the year.
A simple example shows the effect. A landlord who collects KES 50,000 a month from a flat pays 7.5% of KES 50,000, which is KES 3,750 a month, or KES 45,000 over twelve months. Because the tax is charged on gross rent, a landlord with heavy loan repayments pays the same tax as one with no debt.
The KRA page contains two lines that do not match its own headline. One section mentions a 10% rate and a worked example that deducts expenses. The statement of 7.5%, final tax and no deductions appears more than once, so we use it here. Check the figure on the KRA site before you file, because the Finance Act can change it each year. This page is information, not tax advice.
Who must use MRI and who files a normal return?
KRA describes MRI as applying to resident individuals or companies earning rent from residential property in Kenya. The qualifying annual gross rent is above KES 280,000 and not more than KES 15,000,000. Rent below the lower figure is not covered by MRI. A landlord above KES 15 million declares the rent together with other income in the annual return instead.
Two groups sit outside the regime according to the same page. Commercial rent is exempt from MRI, so a landlord of shops or offices follows other rules, which is a question to raise with KRA or an accountant. Non-resident landlords are also exempt from MRI, and they should ask KRA how their Kenyan rent is taxed instead.
If your rent is in the covered band, you register for MRI through iTax. If it is above or below the band, ask KRA which return applies to you.
What are the steps to register and pay on iTax?
KRA lists the steps for registering a property for MRI. You need a KRA PIN and an iTax account first. Then:
- Under the registration tab, choose "Register Property Details".
- Section A fills in automatically. Complete Section B.
- Choose whether you are adding a new property, updating one, or deregistering one.
- Enter the tenant's PIN and the estimated monthly rent.
- Add the entry, add any remarks, and submit.
- Save the acknowledgement receipt.
Rent received in one month is declared and paid by the 20th of the next month. January rent is therefore due by 20 February. KRA says a landlord with no rent in a month must still file a NIL return. If you act as a rental income tax agent and deduct MRI, KRA says you remit it within five working days of the deduction.
What happens if I file or pay late?
The KRA page gives these penalties. Late filing costs an individual KES 2,000 or 5% of the tax due, whichever is higher. For a company the figure is KES 20,000 or 5% of the tax due, whichever is higher. Late payment attracts a 5% charge on the tax, and unpaid tax carries interest of 1% per month or part of a month.
For a landlord paying KES 3,750 a month, a missed deadline therefore costs at least the KES 2,000 filing penalty plus the 5% and interest. The cheapest habit is a monthly reminder for the 15th, and a NIL return in months when no rent arrived.
How does this compare with Uganda?
A Ugandan landlord reading this should note that the two systems differ. A URA Commissioner's article on the Uganda Revenue Authority tax site describes the 2022 amendments for individuals: no tax on gross rent up to UGX 2,820,000 a year, then 12% on the gross rent above that, with no expense deductions, and four quarterly instalments. Companies are treated differently, with only 50% of expenses allowed and tax at 30% on the remainder, an effective 15% according to the article. Our own guide, Tax on Rental Income in Uganda, covers the Ugandan side in more detail.
Both countries tax gross rent on individuals at a flat rate without expenses, but Kenya collects monthly at 7.5% on rent between its two limits, while Uganda charges 12% on rent above its threshold and collects quarterly. Always confirm the current figures with each revenue authority, because both can change the rate.
What should landlords and tenants do next?
If you rent out in Nairobi, keep a written tenancy agreement, record every rent receipt, and register each property on iTax before the first rent date. Tenants who pay rent to a registered landlord should know their own rights; see Tenant Rights in Kenya: Deposits, Notice, Eviction. Rent levels differ by estate, as our pages on Apartments for Rent in Kilimani, Nairobi and Apartments for Rent in Westlands, Nairobi explain.
The Nairobi pages are grouped in Houses and Apartments for Rent in Nairobi by Estate, and the wider Kenya picture for Ugandan investors is in Kenya Land Ownership Guide for Ugandan Investors. Ugandan landlords can compare their own position in Houses and Apartments for Rent in Uganda.
Frequently asked questions
How much tax do landlords pay in Kenya?
On residential rent in the covered band, KRA's page states 7.5% of gross rent, effective 1 January 2024, as a final tax with no deductions. Landlords above KES 15 million a year declare rent in their annual return instead. Confirm the rate on the KRA site before filing.
When is MRI due?
Rent received in a month is declared and paid by the 20th of the following month. January rent is due by 20 February. A landlord with no rent that month files a NIL return, according to the KRA page.
Do non-residents pay MRI?
The KRA page lists non-resident landlords as exempt from MRI. That does not mean their Kenyan rent is untaxed, only that a different rule applies, so a non-resident landlord should ask KRA or an accountant how to declare it.
Is commercial rent covered by MRI?
No. KRA states that commercial rent is exempt from MRI. Landlords of shops and offices follow other tax rules, and should confirm VAT and income tax treatment with KRA or a qualified accountant.
Sources
- Residential rental income (MRI), Kenya Revenue Authority (accessed 2026-11)
- Rental income tax changes for individuals and companies, Uganda Revenue Authority (accessed 2026-11)