KRA Explains New Rental Tax Rules Targeting Landlords Living Abroad

The Kenya Revenue Authority (KRA) announced that non-resident landlords earning rental income from Kenyan properties must now comply with a new simplified tax system, effective from July 1, 2026. They are required to pay 30% of their gross rental income before expenses, with payments due by the 20th of the following month. The regulation also states that relatives, agents, or property managers may be responsible for withholding and remitting the tax on behalf of non-residents. Failure to pay on time results in a 5% penalty and 1% monthly interest.