KRA eRITS Rental Income Tax Compliance: New System Simplifies Filing for Landlords
The Kenya Revenue Authority (KRA) has officially launched the Electronic Rental Income Tax System (eRITS)—a new digital platform aimed at enhancing tax compliance among landlords and property owners in Kenya. This move marks a critical step in modernizing tax processes within the growing real estate sector.
📱 What Is eRITS?
eRITS is a fully digital tax solution designed to simplify rental income tax filing, computation, and payment. Built on the Gava Connect enterprise integration platform, the system is accessible through:
- The Gava Connect API
- The eCitizen portal
This ensures easy access for both individual property owners and rental agents, dramatically reducing the administrative burden traditionally associated with tax filing.
🏗️ Streamlining Compliance Across the Real Estate Sector
The system supports integration within KRA’s broader digital infrastructure, allowing:
- Automated tax computations
- Easy payment scheduling
- Improved transparency and predictability for both taxpayers and regulators
“We are moving toward a smarter, more efficient tax system that benefits everyone,” said Dr. Chris Kiptoo, Principal Secretary to the National Treasury.
“eRITS will foster voluntary compliance while creating a fairer and more equitable tax environment.”
💼 What This Means for Landlords
According to KRA Commissioner General Humphrey Wattanga, eRITS is part of a larger effort to build trust and reduce friction in the tax process.
“With this bold step, tax compliance becomes not a burden, but a shared responsibility for nation-building,” he emphasized.
This system aligns with Kenya’s broader economic reforms, including those targeting real estate growth and increased national revenue collection.
📊 Tied to the MRI Tax System
eRITS is closely linked to the Monthly Rental Income (MRI) tax regime, which applies to landlords earning between Ksh 288,000 and Ksh 15 million annually.
Recent reforms include:
- Reduction in the MRI tax rate from 10% to 7.5% (January 2024)
- Improved digital access to tax filing
- Simplified reporting structures for property income
In FY 2023/2024, the MRI system brought in Ksh 14.4 billion, up from Ksh 13.6 billion the previous year—a 5.2% growth, partly attributed to digital innovations like eRITS.
🏘️ Impact on the Real Estate Sector
Housing Secretary Athman Said noted that enhanced tax compliance will empower the real estate sector to play a more active role in national development.
As urbanization rises and housing demand grows, streamlined tax processes can boost investor confidence and ensure more sustainable growth in Kenya’s property market.
✅ Conclusion
With eRITS, KRA has taken a bold step toward digitizing taxation, particularly in one of Kenya’s fastest-growing economic sectors. By reducing complexity and increasing transparency, the system is expected to:
- Encourage more landlords to comply
- Improve national tax revenue
- Support the government’s vision for a fair, tech-driven economy
The era of manual rental tax returns is fading—eRITS is Kenya’s new digital frontier in tax compliance.
