KRA Collects 10 Billion Rent Income Tax


Kenya Revenue Authority (KRA)  has collected Sh10 billion from landlords. The law that requires them to pay taxes on earnings was introduced by the Finance Act 2015 but was enforced in January 2016.

The Kenya Revenue Authority (KRA) said on Tuesday it has on board 52,000 landlords — slightly over 50 per cent of the targeted 100,000.

The authority said it collects Sh400 million per month, translating to Sh4.8 billion per year.

“We have partnered with other relevant government institutions such as Kenya Bureau of Statistics, Kenya Property Developers Association and the Ministry of Lands, Housing and Urban Development to be able get more landlords who are not in our data base. Our target is to recruit 20,000 new landlords in the financial year 2016/2017,” said KRA manager in-charge of real estate Alice Kiptoo.

Ms Kitoo attributed low compliance among payers to complex taxation system, poor record keeping, informal operations by players and a lack of awareness about the law.

Rental income tax is the amount one pays to the government for earnings derived from the use of residential property.

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Written by Eva Nyambura

Content creator at | Passionate about telling the untold story. Lover of life, music and technology. Simplicity is KEY


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