The Kenya Revenue Authority (KRA) announced a crackdown on more than one million property owners who have not declared rental income for tax purposes.

KRA identified these landlords through a digital cross‑checking system that matches property records with rental declarations, disclosed in a submission to the Departmental Committee on Finance and National Planning on 28 October.

The enforcement will rely on the Electronic Rental Income Tax System (eRITS), launched in April 2025, which links to the eCitizen portal and integrates property registration data, tenant records and geolocation mapping.

eRITS targets resident landlords whose gross rental earnings fall between Ksh288,000 and Ksh15 million per year; the applicable rate is a final 7.5 percent of gross income, effective from January 2024.

Landlords must submit their gross rental earnings each month; the platform automatically calculates the tax without permitting deductions for expenses or losses, and filings are due on or before the 20th day of the following month.

KRA expects the eRITS “fusion engine” to improve compliance and increase rental income collection, noting that illicit tax evasion costs the government about Ksh153 billion annually, with roughly 65 percent attributed to missed rental revenue.

The initiative aligns with the National Treasury’s target of Ksh2.98 trillion in ordinary tax revenue for the 2026/2027 fiscal year, part of a broader goal of Ksh3.63 trillion projected government revenue.