This is Part 1 of our Rental Income Tax series, breaking down the basics every landlord in Kenya should know.
So, you’ve got a house or apartment you’re renting out. The rent is rolling in. But here’s the million-shilling question: what about tax?
Rental Income Tax, or MRI, is a simplified tax introduced to make things easier for residential landlords in Kenya. It applies to:
👉 Resident individuals or companies earning rent from residential property in Kenya.
👉 Landlords whose annual rental income is more than KES 280,000 but less than KES 15 million.
And here’s the deal:
· The tax rate is 7.5% of the gross rent (no deductions allowed).
· It’s a final tax — once paid, you’re done.
· Effective from 1st January 2024.
💡 Example:
If your tenants pay you KES 100,000 rent in January, MRI = KES 7,500. That’s it.
MRI is designed to be straightforward. But don’t confuse “simple” with “optional” — fail to comply, and penalties will hit harder than unpaid rent.