In a major step towards digitizing Kenya’s tax system, the Kenya Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS), a user-friendly digital platform to file and pay taxes on rental income.

This is part of a broader government initiative to modernize tax administration, transparency and compliance in the real estate sector which is a key pillar of Kenya’s economy.

What is eRITS?

eRITS is an electronic platform to compute, file and pay rental income tax. Hosted on the Gava Connect platform—a government owned enterprise integration system—it is accessible through Gava Connect API and eCitizen portal.

It is designed for landlords, property managers and agents to have a seamless user experience to reduce the administrative burden associated with rental income tax compliance.

A Big Milestone for Kenya’s Tax System

Speaking during the launch, Dr. Chris Kiptoo, Principal Secretary to the National Treasury said the platform will make tax compliance less cumbersome.

“With eRITS we are moving towards a smarter and more efficient tax system that benefits everyone. This is a big step towards fairness and predictability in Kenya’s tax regime,” said Dr. Kiptoo.

Encouraging Voluntary Compliance

By simplifying the tax process, the government hopes to encourage voluntary compliance among landlords—eliminate excessive enforcement. According to KRA Commissioner General Humphrey Wattanga the system was designed to integrate with the authority’s overall tax infrastructure.

“eRITS enables landlords to meet their tax obligations with ease. It transforms tax compliance from a source of anxiety to a tool for national development,” Wattanga noted.

Supporting Monthly Rental Income (MRI) Tax Regime

The launch of eRITS complements the Monthly Rental Income (MRI) tax system introduced in 2016 to simplify rental tax for individuals and small landlords. MRI applies to property owners earning between Ksh 288,000 and Ksh 15 million annually from rent.

To further ease compliance the government reduced the MRI tax rate from 10% to 7.5% in January 2024. This tax relief has helped in improving collections while reducing the burden on compliant property owners.

Tangible Revenue Growth and Sector Impact

FY 2023/2024 saw KRA collect Ksh 14.4 billion under the MRI regime—a 5.2% increase from the previous year’s Ksh 13.6 billion. This is proof that digital tools like eRITS can drive compliance and grow the tax base in the real estate sector.

Housing Secretary Athman Said praised these tax reforms saying:

“Compliance means more resources for infrastructure, housing and social programs. Real estate is no longer just about shelter—it’s part of Kenya’s economic engine.”

What Landlords Need to Know

With eRITS now live, all landlords in Kenya are advised to get familiar with the system through the eCitizen portal or through integration with Gava Connect. The platform allows:

  • Automated tax computation based on rental income

  • Monthly and annual tax filing

  • Real time payment processing

  • Integration with existing taxpayer records

This is in line with global best practices and positions Kenya as a leader in digital tax administration in the region.

Key Points:

  • KRA launches eRITS to simplify rental income tax compliance.

  • System is integrated with eCitizen and Gava Connect.

  • Encourages voluntary compliance and reduces administrative burden.

  • Complements the MRI tax regime and the recent 7.5% rate cut.

  • Real estate tax revenues were Ksh 14.4 billion in FY 2023/24.

  • Government sees digital taxation as key to economic growth.