The Kenya Revenue Authority (KRA) has launched the Electronic Rental Income Tax System (eRITS), a new digital platform aimed at enhancing tax compliance among landlords and property owners in Kenya.
This initiative is part of the government’s broader efforts to modernize tax systems and improve efficiency within the real estate sector. The eRITS platform, which operates on the government’s Enterprise Integration Platform, Gava Connect, is designed to simplify the tax filing process for rental income.
Accessible through both the Gava Connect API and the eCitizen platform, eRITS enables seamless integration for tax computation, filing, and payment. The platform is intended to reduce the administrative burdens faced by property owners and agents, making tax compliance more convenient and less time-consuming.
During the official launch, Principal Secretary to the National Treasury, Dr. Chris Kiptoo, commended the system, calling it a significant milestone in the government’s efforts to ensure a fair and efficient tax environment.
“The government is committed to ensuring that the tax system remains fair and that compliance is as seamless as possible. With eRITS, we are moving towards a smarter, more efficient tax system that benefits everyone. With this system, we aim to not only increase revenue collection but also create a more equitable and predictable tax environment that benefits both taxpayers and the government,” said PS Kiptoo.
The system’s introduction is expected to foster voluntary tax compliance, encouraging landlords to meet their obligations without the need for frequent oversight.
KRA Commissioner General Humphrey Wattanga explained that the eRITS platform was designed to integrate seamlessly with the broader KRA ecosystem, supporting smooth tax computations and payments.
“This system will make it easier for landlords to comply with their tax obligations while reducing the administrative burden on both taxpayers and the government,” said Wattanga. “We are taking a bold step toward a future where tax compliance is not a burden, but a shared responsibility for nation-building.”
The launch of eRITS comes as part of the broader reforms to Kenya’s tax system, including the Monthly Rental Income (MRI) tax regime. Introduced in 2016, the MRI applies to landlords earning between Ksh 288,000 and Ksh 15 million annually.
In January 2024, the government reduced the MRI tax rate from 10% to 7.5%, demonstrating a commitment to easing the tax burden on property owners and encouraging compliance.
In the 2023/2024 financial year, tax revenues collected through the MRI system amounted to Ksh 14.4 billion, marking a 5.2% year-on-year growth compared to Ksh 13.6 billion in the previous year.
This growth reflects both the increased compliance facilitated by systems like eRITS and the continued expansion of the real estate sector as a key contributor to Kenya’s economy.
Housing Secretary Mr Athman Said also highlighted the positive impact of these reforms on Kenya’s real estate sector. He emphasized that increased tax compliance will enable the sector to play a crucial role in the country’s overall development, contributing to national growth through improved revenue generation.
With the launch of eRITS, KRA has taken a significant step towards improving tax compliance in the real estate sector, making it easier for landlords to meet their obligations while helping to boost the country’s revenue collection efforts.
