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Economy

KRA Introduces New Tool for Landlords 

Judith MwauraBy Judith MwauraApril 10, 2025No Comments3 Mins Read
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KRA Launches New Digital System to Help Landlords Pay Taxes Easily

Landlords and property owners across Kenya now have a new, easier way to pay their taxes, thanks to the launch of a new system by the Kenya Revenue Authority (KRA).

The new platform, known as the Electronic Rental Income Tax System (eRITS), was unveiled recently to help simplify how landlords pay rental income tax every month.

This new system is built on KRA’s Enterprise Integration Platform, called Gava Connect. It is meant to improve how landlords comply with tax rules using modern technology.

With eRITS, landlords can now compute, file, and pay their taxes digitally and on time.

To use the new system, property owners can either log in through the Gava Connect API portal for a system-to-system connection or access it via the eCitizen platform.

KRA stated that the goal of creating eRITS is to encourage more landlords to pay taxes voluntarily and make the entire process less stressful and time-consuming.

The introduction of eRITS is also part of the government’s broader plan to make tax compliance easier and more of a shared duty among all citizens.

The idea is to promote a culture where paying taxes is viewed as a contribution to building the country, not just a burden.

The system was officially launched on Thursday during an event in Nairobi. The launch was attended by top government officials, including Treasury Principal Secretary Chris Kiptoo, who praised the development as a major step in improving the country’s tax system.

While speaking at the launch, Kiptoo emphasized that the new system will benefit all Kenyans by making tax processes more efficient.

He noted, “The government is working hard to make the tax system fair and easy for everyone. With eRITS, we’re moving to a smarter and more modern way of collecting taxes that benefits both taxpayers and the government. It’s about improving revenue while ensuring fairness and predictability in taxation.”

KRA Commissioner General Humphrey Wattanga also spoke during the event, saying the eRITS system is a tool designed to encourage voluntary compliance among landlords and property agents.

He added that the platform shows KRA’s dedication to improving services, increasing efficiency, and supporting continuous progress in how taxes are handled.

It’s worth noting that the Monthly Rental Income (MRI) tax was introduced in 2016 and applies to landlords who earn between Ksh288,000 and Ksh15 million every year from rental income.

From January 1, 2024, the MRI tax rate was lowered from 10% to 7.5%, showing the government’s efforts to ease the tax burden for property owners.

In the financial year 2023/2024, KRA collected Ksh14.4 billion through MRI taxes. This was a 5.2% increase compared to the previous year’s collection of Ksh13.6 billion, and an even bigger rise from Ksh12.3 billion collected the year before that.

With the launch of eRITS, KRA hopes to see even more landlords complying with tax rules, leading to higher collections and improved national development.

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Judith Mwaura is a dedicated journalist specializing in current affairs and breaking news. She is passionate about delivering accurate, timely, and well-researched stories on politics, business, and social issues. Her commitment to journalism ensures readers stay informed with engaging and impactful news.

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