The Kenya Revenue Authority (KRA) has launched a eRITS system aimed at simplifying rental income tax compliance in Kenya, in a move expected to transform the way landlords and property agents manage their tax obligations.
The new platform, known as the Electronic Rental Income Tax System (eRITS), was unveiled during an event in Nairobi presided over by top government officials, including Dr. Chris Kiptoo, Principal Secretary to the National Treasury. Developed using the KRA’s Gava Connect Enterprise Integration Platform, eRITS system is designed to encourage voluntary tax compliance while streamlining operations within the real estate sector.
“The government is committed to ensuring that the tax system remains fair and that compliance is as seamless as possible,” Dr. Kiptoo said. “With eRITS, we are moving towards a smarter, more efficient tax system that benefits everyone.”
According to the Treasury, the real estate sector is becoming an increasingly significant contributor to national revenue, and the new system is expected to enhance compliance by reducing complexity and increasing transparency in the rental income tax process.
The eRITS system initiative aims to bring more landlords into the tax net through automation and system integration. It is the latest in a series of government-backed reforms targeted at increasing tax revenues and improving service delivery.
KRA Commissioner General Humphrey Wattanga said the system is a voluntary compliance tool designed to help landlords and property agents meet their obligations more efficiently.
“This system supports rental income tax compliance in Kenya and reflects our commitment to service excellence and continuous improvement,” Wattanga stated.
The platform enables seamless integration with the KRA ecosystem for tax computation, filing, and payment. It is accessible through the Gava Connect API for system-to-system integration and is also available as a service via the eCitizen platform. The design aims to reduce administrative burdens while making the process user-friendly and secure.
“With this launch, we are taking a bold step toward a future where tax compliance is not a burden but a shared responsibility for nation building,” Mr. Wattanga added.
The implementation of eRITS comes on the back of significant policy changes. Since its introduction in 2016, Kenya’s Monthly Rental Income (MRI) tax has applied to landlords earning between KSh288,000 and KSh15 million annually.
In January 2024, the MRI tax rate was reduced from 10% to 7.5%, part of a broader initiative to ease the tax burden and encourage compliance. The reduction appears to be yielding results. In the 2023/2024 financial year, revenue from the MRI rose to KSh14.4 billion, representing a 5.2% increase compared to KSh13.6 billion in 2022/2023 and KSh12.3 billion the year before.
These gains underscore the potential of digital transformation in boosting tax collection and broadening the tax base. Authorities hope that eRITS will build on this momentum and further enhance voluntary compliance among property owners.
Officials from the Ministry of Housing also expressed support for the new system. Mr. Athman Said, Housing Secretary at the State Department of Housing and Urban Development, said the real estate sector is now a major revenue contributor and that the government is committed to developing systems that support its growth while ensuring compliance.
“This is a game-changing innovation for the real estate industry and for rental income tax compliance in Kenya,” he noted.
The government has framed eRITS as a collaborative effort between public and private sectors, encouraging landlords to view taxation not as a burden, but as a national duty.
“This system is not just about revenue collection,” said Commissioner General Wattanga. “It’s about trust, fairness, and building a nation where every citizen plays a role in its progress.”
The unveiling of eRITS represents a continuation of KRA’s digital strategy, with a long-term vision of building a robust, technology-driven tax ecosystem. Authorities are betting on digital systems like eRITS to reduce tax evasion, enhance efficiency, and ensure a level playing field for all taxpayers.
As Kenya grapples with budget deficits and seeks to expand its tax base, platforms that enable easier compliance without the need for punitive enforcement may prove to be one of the most effective tools in the government’s arsenal.
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