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KRA Launches eRITS to Boost Rental Income Tax Compliance
KRA https://www.kra.go.ke/ has launched the Electronic Rental Income Tax System (eRITS) to simplify and enhance tax compliance among landlords and property owners.
This new system, developed through KRA’s Enterprise Integration Platform—Gava Connect—introduces a streamlined, tech-driven approach to tax processes within the real estate sector.
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During the launch, National Treasury Principal Secretary Dr. Chris Kiptoo praised the initiative. He described it as a major step toward a fair, transparent, and efficient tax environment.
“The government remains committed to building a tax system that is not only fair but also easy to comply with,” Dr. Kiptoo stated. “With eRITS, we are taking a leap toward smarter tax administration that works for both citizens and the nation.”
Furthermore, he pointed out that the system will improve revenue collection while promoting equity and predictability in taxation.
Similarly, Housing Secretary Athman Said expressed optimism that the real estate sector will now contribute more meaningfully to national development through improved tax compliance.
Meanwhile, KRA Commissioner General Humphrey Wattanga emphasized that eRITS serves as a voluntary compliance tool designed to assist landlords and property agents. He reaffirmed KRA’s commitment to service excellence, innovation, and continuous improvement.
KRA Launches eRITS to Boost Rental Income Tax Compliance
“eRITS integrates effortlessly with KRA systems for tax calculation, filing, and payment,” Mr. Wattanga explained. “Taxpayers can access it via the Gava Connect API or the eCitizen platform. Our objective is to make compliance easier while cutting down on administrative hassle.”
He concluded by saying, “This marks a bold move toward shared responsibility in nation-building through tax compliance.”
MRI Tax Performance Reflects Growing Compliance
Since its introduction in 2016, the Monthly Rental Income (MRI) tax has targeted landlords earning between Ksh 288,000 and Ksh 15 million annually.
Notably, the government lowered the MRI tax rate from 10% to 7.5% in January 2024, reinforcing its commitment to easing the tax burden.
As a result, tax revenues collected through MRI rose to Ksh 14.4 billion in the 2023/2024 financial year.
This represents a 5.2% increase from Ksh 13.6 billion in the previous year and Ksh 12.3 billion the year before that.
Clearly, the steady growth in MRI revenue highlights improved compliance and signals increased confidence in the evolving tax system.
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