Landlords and property owners across the nation will now have a chance to pay their taxes seamlessly and conveniently after the Kenya Revenue Authority (KRA) unveiled an Electronic Rental Income Tax System (eRITS).
The platform built on KRA's Enterprise Integration Platform, Gava Connect, is set to streamline compliance for the real estate sector from a technology perspective, enabling landlords to pay their monthly rental income taxes on time.
eRITS is designed to enable seamless integration with the KRA ecosystem for purposes of tax computation, filing, and payment.
To access the system, property owners will be required to log in to the Gava Connect API portal for system-to-system integration or the eCitizen platform.
According to KRA, the intention of creating the new system is to augment voluntary compliance within the sector while reducing administrative burdens associated with taxation.
This is part of the government's broader efforts to ensure a future where tax compliance is not a burden but a shared responsibility for nation building.
The system launched on Thursday in an event attended by senior government officials, including Treasury Principal Secretary Chris Kiptoo, highlighted the development as a significant milestone in the government’s commitment to ensuring a fair and efficient tax system that will contribute to national development.
Speaking at the event held in Nairobi, Kiptoo assured that the system will benefit every Kenyan and ensure an efficient tax system.
''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. With this system, we aim to not only increase revenue collection but also create a more equitable and predictable tax environment that benefits both taxpayers and the government,'' Kiptoo stated.
According to KRA Commissioner General Humphrey Wattanga, the system is a voluntary compliance tool that aims to support and enhance tax compliance among rental property owners and agents, adding that the system reflects the taxman's commitment to service excellence, efficiency, and continuous improvement.
Introduced in 2016, the Monthly Rental Income (MRI) applies to landlords earning between Ksh288,000 and Ksh15 million annually.
The MRI tax rate was reduced from 10 per cent to 7.5 per cent, from January 1, 2024, demonstrating the government’s commitment to easing the burden of taxation among taxpayers.
In the last financial year, 2023/2024, tax revenues collected through MRI stood at Ksh14.4 billion, translating to a 5.2 per cent year-on-year growth compared to a collection of Ksh13.6 billion and Ksh12.3 billion in the previous financial years.