The Kenya Revenue Authority (KRA) has launched a new system aimed at enhancing tax adherence for landlords and property holders.
The adoption of the Electronic Rental Income Tax System (eRITS), nonetheless, will remain optional.
“E-RITS is intended to facilitate smooth incorporation into the KRA ecosystem for tasks such as calculating taxes, submitting returns, and making payments. It can be accessed via the Gava Connect API portal for system integrations and also operates as a service through the eCitizen platform. This initiative aims to enhance voluntary adherence to tax obligations while lessening the paperwork and administrative challenges related to taxation,” stated KRA Commissioner General Humphrey Wattanga.
“By launching this initiative, we’re boldly moving towards a future where paying taxes isn’t seen as an obligation but rather as a collective duty for constructing our nation,” he stated additionally.
At present, landlords who earn an annual income ranging from Sh288,000 to Sh15 million are obligated to pay taxes as per the Monthly Rental Income (MRI) regulations, which were implemented in 2016.
At first, the MRI tax rate was set at 10 percent but was subsequently reduced to 7.5 percent in January of the previous year.
During the previous financial year 2023/2024, tax collections via MRI amounted to Sh14.4 billion, marking a 5.2% increase from the prior fiscal year’s total of Sh13.6 billion.
Through eRITS, we are progressing toward a more intelligent and efficient taxation framework that advantages all parties involved,” remarked National Treasury PS Chris Kiptoo. He added, “This initiative seeks to boost revenue gathering as well as establish a fairer and more consistent tax landscape benefiting both contributors and the administration.
Provided by GAPTEKZONE. (
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