For quite a long time landlords have been collecting their rental income tax-free. This has prompted the government through its revenue collecting organization Kenya Revenue Authority (KRA) to broaden its tax base by ensuring that all landlords pay these taxes to enable the government to achieve its big four agenda of health, proper housing, manufacturing and food security.
To enlighten you, these tax obligation that all landlords are required to pay is referred to as Monthly Rental Income (MRI) tax. This tax came into effect in the year 2016 and it is mandatory that all landlords pay these taxes as soon as possible.
On the contrary, to avoid penalties due to late payments all landlord are required to volunteer to the nearest KRA office and register themselves using their current KRA pins and be committed to pay 10% of their collected rental incomes each month.
On that note, it is the duty of each and every landlord to declare their rental incomes or risk the wrath of hiding themselves and an assessment raised on their rental incomes by the KRA field officers on the ground. This high assessment is attributed to ignorance on KRA laws. The earlier you register, file and pay your returns on time before 20th of every month the better for you.