In a significant move to modernize tax administration within Kenya’s real estate sector, the Kenya Revenue Authority (KRA) has unveiled the Electronic Rental Income Tax System (eRITS), a new digital platform designed to simplify rental tax filing and promote voluntary compliance among landlords and property owners.
The eRITS platform, officially launched on Thursday, integrates with KRA’s Gava Connect and the eCitizen platform, offering a user-friendly, technology-driven solution that enables property owners to compute, file, and pay rental income tax with enhanced convenience and accuracy.
The system is part of KRA’s broader digital transformation agenda aimed at reducing the administrative burdens traditionally associated with taxation and increasing overall compliance within the rental income tax bracket.
By providing a centralized, seamless, and transparent tax process, eRITS is expected to enhance efficiency while reinforcing the government’s commitment to fair and inclusive taxation.
A Step Forward in Tax Reform
Speaking during the launch, Treasury Principal Secretary Dr. Chris Kiptoo lauded the innovation as a vital step toward building a more equitable tax environment in Kenya.
“Our commitment is to a fair and user-friendly tax system, and eRITS represents our move to a more efficient and beneficial structure for everyone,” he stated. “This platform aims to boost revenue and establish a stable and fair tax environment that serves the interests of both taxpayers and the government.”
KRA Commissioner General Humphrey Wattanga echoed similar sentiments, describing eRITS as a voluntary compliance tool that not only improves service delivery but also represents a mindset shift in how taxation is perceived.
“This initiative showcases KRA’s commitment to service, efficiency, and continuous improvement. It reflects the government’s dedication to fostering a future where tax compliance is not seen as a burden, but as a collective contribution to national development,” Wattanga said.
How eRITS Works
Landlords and property owners can now access the eRITS system via the Gava Connect API portal for system integration or directly through the eCitizen platform.
The portal offers features that allow users to calculate their rental income tax obligations, file returns, and make payments, all in one integrated environment.
The launch of eRITS is also expected to improve data accuracy, enhance accountability, and minimize tax evasion within the real estate sector, which has historically faced challenges in enforcement and compliance.
Context and Impact
The Monthly Rental Income (MRI) tax was first introduced in 2016 and targets landlords earning between Sh288,000 and Sh15 million annually.
As of January 1, 2024, the tax rate was reduced from 10% to 7.5% in a government effort to alleviate the tax burden on compliant property owners and stimulate voluntary disclosure.
The revenue collected through the MRI tax has seen steady growth. In the 2023/2024 financial year, MRI tax collections reached Sh14.4 billion, reflecting a 5.2 percent year-on-year increase from Sh13.6 billion in 2022/2023 and Sh12.3 billion in 2021/2022.
The introduction of eRITS is poised to further enhance this performance by attracting more landlords into the tax net and minimizing the cost of compliance.
A Vision for the Future
With the rollout of eRITS, the government is reaffirming its commitment to digital governance and transparent fiscal management.
The platform not only streamlines a critical revenue stream but also aligns with Kenya’s broader goals of economic modernization and inclusive growth.
As the country intensifies efforts to widen its tax base and strengthen public finances, tools like eRITS will play a pivotal role in reshaping the relationship between citizens and the tax system—transforming taxation from a dreaded obligation into a shared responsibility for national prosperity.
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