KRA Orders Landlords Receiving Monthly Rental Income of Between Sh280k and Sh15M to do This

The Kenya Revenue Authority (KRA) has reportedly issued a directive affecting landlords who earn significant amounts of rental income each month.

According to the report, landlords receiving between Ksh280,000 and Ksh15 million in monthly rental income are required to remit a specified portion of their gross rental earnings to the tax authority.

The directive reportedly sets the applicable rate at 7.5 per cent of gross rental income. This means landlords within the stated income range would be expected to calculate the required amount based on their total rental receipts and remit it to KRA in accordance with the applicable tax requirements.

The development could have implications for both property owners and tenants. Some landlords may seek to adjust rental charges in response to additional tax obligations, potentially increasing the amount tenants pay for accommodation.

The reported directive comes amid broader efforts by the Kenyan government to strengthen revenue collection and ensure that income from different economic activities is properly accounted for.

Landlords are therefore expected to familiarise themselves with the applicable requirements and ensure that their rental income is declared correctly. Failure to comply with tax obligations can result in penalties or other enforcement measures under Kenyan tax laws.

The issue is likely to attract attention among property owners, particularly those with multiple rental units whose combined monthly income falls within the specified range.

For tenants, any decision by landlords to transfer additional tax costs through higher rents could have an impact on household expenses, particularly in areas where rental prices are already a significant financial burden.

However, the exact application of the reported 7.5 per cent requirement, including the relevant tax category, thresholds and effective date, should be confirmed directly through official KRA guidance before landlords or tenants make financial decisions.

The development highlights the continuing importance of understanding Kenya’s changing tax requirements, particularly for individuals earning income from property.

https://nation.africa/kenya/business/-landlords-small-traders-feel-pinch-of-housing-levy-4616496