The Kenya Revenue Authority (KRA) is seeking to make registration on its Electronic Rental Income Tax System (eRITS) compulsory for landlords across the country as it intensifies efforts to boost tax compliance in the real estate sector.
The proposal is contained in the Draft Income Tax (Residential Rental Income Tax) Regulations 2026, recently released for public participation. According to the draft rules, every property owner earning taxable residential rental income will be required to register their properties on the eRITS platform.
Why KRA Wants Mandatory eRITS Registration
KRA introduced the eRITS platform in September 2025 to simplify rental tax collection and improve compliance among landlords. However, adoption numbers have remained significantly below expectations.
Recent figures show that only 1,412 landlords have signed up on the system so far, with 2,628 buildings and 26,668 rental units registered. In addition, just 529 tax returns had been filed through the platform, generating approximately KES 1.68 million in tax revenue.
The low uptake has raised concerns within the government, especially after earlier projections estimated that the system could help increase annual rental tax collections to KES 80 billion from the previous KES 14 billion baseline.
What the Proposed Regulations Say
Under Clause 7 of the draft regulations, landlords earning residential rental income will be obligated to register their properties in an electronic system designated by the KRA Commissioner.
The move signals a shift from voluntary compliance to a stricter enforcement approach aimed at widening the tax base in Kenya’s fast-growing property market.
KRA believes mandatory onboarding could help improve transparency, track undeclared rental income, and streamline tax administration for landlords.
How eRITS Works
The eRITS platform allows landlords to:
- Register rental properties online
- File rental income tax returns digitally
- Make tax payments electronically
- Update property information through the system
The platform can be accessed through the official eRITS portal or via Kenya’s eCitizen platform.
Public Participation Ongoing
KRA has opened the draft regulations for public consultation as required by Kenyan law. Stakeholders, landlords, and members of the public are expected to submit their feedback before the regulations are finalized.
If approved, the new rules could significantly change how landlords manage rental income tax obligations in Kenya, while giving KRA stronger oversight over the country’s rental property sector.
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