The Kenya Revenue Authority (KRA) has rolled out the Electronic Rental Income Tax System (eRITS), a digital platform designed to register properties, file returns, and enforce the Monthly Rental Income (MRI) tax.
The real estate sector has been difficult to regulate because many landlords operate informally. With eRITS, KRA expects to pull more landlords into the tax net, verify ownership and detect under-declared income.
In a public notice, the Kenya Revenue Authority (KRA), led by Commissioner General Humphrey Wattanga, called on all landlords to register their properties through the government’s eCitizen portal.
“The platform will enable management of properties, filing and payment of rental taxes in a simple and convenient way,” it said.
What is eRITS?
The Electronic Rental Income Tax System (eRITS) integrates with the government’s Gava Connect platform and can be accessed via erits.kra.go.ke or eCitizen.
According to the KRA, the system does not introduce a new tax but enforces the MRI tax, in place since 2016. This applies to rental income between KES 288,000 ($2,229) and KES 15 million ($116,144) per year, taxed at 7.5% of gross rent. The levy is final, landlords cannot offset expenses or deductions.
Returns and payments are due by the 20th of each month, with NIL returns required even where no rent is collected.
What Landlords Needs to Know
Landlords must register each property, declare monthly rent, and include their tenants’ KRA PINs. The tenant PIN requirement is crucial for cross-checking rental activity against tax declarations.
After filing, the system auto-calculates the 7.5% levy and generates a Payment Registration Number (PRN) for settlement through mobile money or bank transfer.
The KRA said failure to comply attracts stiff penalties, including:
- Late filing: 5% of tax due or KES 2,000 (individuals) / KES 20,000 (companies), whichever is higher.
- Late payment: 5% of the tax due plus 1% monthly interest.
- Withholding failures: 10% penalty on the tax amount involved.
KRA may also freeze bank accounts, issue backdated claims, or initiate court proceedings.
Tenants’ Data and Privacy Concerns
One of the most controversial provisions of eRITS is the mandatory submission of tenants’ KRA PINs. KRA argues this measure ensures accurate declarations. However, under Kenya’s Data Protection Act, PINs are classified as personal data.
Tenants are entitled to know how their data is used, while KRA must ensure safeguards are in place. For now, the lack of clarity on whether tenant data will be used strictly for rent verification or for wider financial monitoring, remains a sticking point.
Some analysts warn that the added compliance burden may lead landlords to transfer costs onto tenants through higher rents.
Challenges and Opportunities
While eRITS promises efficiency, experts note potential hurdles. System downtimes, limited digital literacy among small landlords, and concerns over fairness in data use could undermine uptake.
At the same time, the platform formalises a sector historically dominated by cash-based, informal arrangements. If properly implemented, industry leaders say it could expand Kenya’s tax base, improve data integrity, and strengthen fiscal stability.
For many observers, the launch of eRITS marks a significant milestone in Kenya’s digital tax administration. For compliant landlords, it offers clarity and convenience. For defaulters, it raises the risks of penalties and exposure.
For tenants, the shift brings both formality and fresh questions about data protection. As Kenya pushes to close an estimated KES 83 billion rental tax gap, experts say the success of eRITS will hinge not only on compliance rates but also on KRA’s ability to balance enforcement with transparency and fairness.
Talking Points
It is notable that the Kenya Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS) to digitise property tax compliance, tackling one of the country’s largest untapped revenue streams.
By linking landlord declarations with tenant PINs and platforms such as Ardhisasa, KRA is closing loopholes that previously made it easy to under-declare or avoid paying rental income tax.
At Techparley, we see eRITS as a step toward formalising Kenya’s real estate sector, which has traditionally operated informally and often outside the tax net. This integration of data, geo-mapping, and digital filing could reshape how landlords and tenants interact with government systems.
The requirement for landlords to submit tenant PINs raises pressing questions around data protection and privacy. While this enhances transparency for KRA, clarity is needed on how tenant data will be used beyond confirming rental income declarations.
For landlords, compliance will bring certainty and reduce disputes, but for those who fail to act, penalties, ranging from fines to frozen accounts will be a steep price to pay.
The long-term opportunity lies in how well KRA manages adoption. If effectively executed, eRITS could become a blueprint for digital tax administration across Africa, proving that technology-driven compliance can expand the tax base and support public revenue growth.
