How Monthly Rental Income tax works
If you earn rent from a house, flat or room in Kenya, KRA taxes it every month through Monthly Rental Income tax, known as MRI.
The rules (October 2026)
| Tax rate | 7.5% |
| Charged on | Gross rent received |
| Applies to rent of | KSh 288,000 – 15M a year |
| File and pay by | 20th of the next month |
| Expenses deductible? | No |
MRI is a final tax: once it's paid, there is nothing more to pay on that rent. It covers residential property only. Commercial rent, and residential rent above KSh 15 million a year, go on your annual income tax return instead.
Worked example: KSh 60,000 received in September
| Rent received | KSh 60,000 |
| MRI at 7.5% | KSh 4,500 |
| Due by | 20 October 2026 |
| If paid on 5 December instead | KSh 6,815 |
Paying six weeks late costs KSh 2,315 extra: a KSh 2,000 late filing penalty, 5% late payment penalty (KSh 225) and 1% interest for each month or part of a month (2 months, KSh 90).
How to file
- Log in to iTax (or the KRA M-Service app) and make sure your rental property is registered.
- Choose the Monthly Rental Income return for the month and enter the rent you received.
- iTax works out the 7.5% and gives you a payment slip.
- Pay by M-Pesa or bank before the 20th, and keep the payment reference.
Frequently asked questions
What if a tenant didn't pay? MRI is charged on rent you actually received. No rent in a month means no MRI for that month.
Can I deduct repairs or the agent's fee? No. MRI is charged on gross rent. Tracking expenses still matters, to know your real profit.
Is it worth buying to let? Compare the numbers with the rent vs buy calculator, and see what a mortgage costs with the loan calculator.
For education only, not tax advice. Based on KRA rules as at October 2026. Check kra.go.ke or a tax adviser for your situation.