Who Pays Rental Income Tax in Kenya? And Who’s Exempt? 🙋♂️🙅♀️
Welcome to Part 2 of our Rental Income Tax series. In Part 1, we explained the basics of MRI. Now let’s talk about who it applies to (and who gets a pass).
MRI applies to:
✅ Resident landlords (individuals or companies) renting out residential property in Kenya.
✅ Annual rental income between KES 280,000 – 15 million.
MRI does not apply to:
❌ Non-resident landlords (they’re taxed differently).
❌ Commercial properties (shops, offices, etc. are taxed under normal income tax rules).
❌ Landlords earning below KES 280,000 annually.
❌ Landlords earning above KES 15 million annually (they move to regular income tax, with allowable expense deductions).
So if you own a few bedsitters in Nairobi, MRI is your lane. But if you’re managing an entire mall, you’re playing in the big league with different tax rules.
💡 Quick check: Do you know which category you fall into?