The Kenya Revenue Authority (KRA) has unveiled a new digital system aimed at improving tax compliance in the real estate sector. The Electronic Rental Income Tax System (eRITS), launched by the National Treasury Principal Secretary Dr. Chris Kiptoo, is designed to streamline rental income tax processes through digital integration.
Built on KRA’s Enterprise Integration Platform, Gava Connect, eRITS is expected to make rental tax compliance simpler and more efficient for landlords and property owners. Speaking at the launch, Dr. Kiptoo emphasized the government’s commitment to leveraging technology for a fairer tax regime.
“The government is committed to ensuring that the tax system remains fair and that compliance is as seamless as possible. With eRITS, we are moving towards a smarter, more efficient tax system that benefits everyone,” Kiptoo stated.
KRA Commissioner General Humphrey Wattanga described the system as a voluntary compliance tool designed to support landlords and property agents. It allows for smooth integration with the KRA ecosystem, aiding in tax computation, filing, and payment processes.
“eRITS is accessible via the Gava Connect API portal for system-to-system integration and as a service through the eCitizen platform. The intention is to augment voluntary compliance while reducing administrative burdens associated with taxation,” Wattanga said.
The Monthly Rental Income (MRI) tax, which applies to landlords earning between Ksh 288,000 and Ksh 15 million annually, has seen consistent growth since its introduction in 2016. Notably, the MRI tax rate was reduced from 10 percent to 7.5 percent effective January 1, 2024, reflecting the government’s efforts to ease the tax burden on property owners.
In the 2023/2024 financial year, MRI tax collections reached Ksh 14.4 billion, marking a 5.2 percent increase from Ksh 13.6 billion in the previous year and Ksh 12.3 billion the year before.
The launch of eRITS signals KRA’s continued push toward digital transformation, aiming to bring more landlords into the tax net while making the process more transparent and less cumbersome. With enhanced
