The Kenya Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS) to promote voluntary tax compliance among landlords and property owners. Developed on the Gava Connect platform, the system is expected to enhance efficiency and simplify rental income tax processes.
Speaking at the launch, Dr. Chris Kiptoo, Principal Secretary to The National Treasury, described eRITS as a key step towards a smarter, fairer tax system. He stated, “The government is committed to ensuring that the tax system remains fair and that compliance is as seamless as possible. With eRITS, we aim to not only increase revenue collection but also create a more equitable and predictable tax environment that benefits both taxpayers and the government.”
Mr Athman Said, Housing Secretary at the State Department of Housing and Urban Development, also expressed support for the initiative, noting its potential to boost national development through improved tax revenue from the real estate sector.
KRA Commissioner General Mr Humphrey Wattanga emphasised that eRITS is designed as a voluntary compliance tool. He highlighted its ability to support integration with the wider KRA digital ecosystem, stating, “eRITS enables seamless tax computation, filing, and payment. It is available via the Gava Connect API portal for system-to-system integration, and also through the eCitizen platform.”
Mr Wattanga added, “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.”
The Monthly Rental Income (MRI) tax, which applies to landlords earning between Ksh 288,000 and Ksh 15 million annually, was introduced in 2016. The MRI tax rate was reduced from 10% to 7.5% effective 1 January 2024, underscoring the Government’s commitment to easing the tax burden.
In the financial year 2023/2024, KRA collected Ksh 14.4 billion through MRI, marking a 5.2% increase from Ksh 13.6 billion in 2022/2023 and Ksh 12.3 billion in 2021/2022.
KRA reaffirmed its focus on leveraging technology to improve service delivery and tax administration in line with national development goals.