Rental Income Tax (MRI)
7.5% of gross rent · KES 288k–15M annual band · Monthly final tax · eRITS-ready
Average paying tenancy across the year, after voids.
Rental income tax (MRI) in Kenya
The rental income tax calculator computes Monthly Rental Income (MRI) tax for Kenyan landlords. MRI is a simplified final tax of 7.5% of gross rent for residential properties earning between KES 288,000 and KES 15 million a year, no deductions, filed monthly through KRA’s eRITS system.
Enter your units, rent per unit and occupancy, and the calculator shows your monthly and annual MRI, your net rental income after tax, and whether your rent falls inside the MRI band or outside it (where normal income tax applies instead). It is the fastest way to know exactly what to file each month.
Frequently Asked Questions
What is Monthly Rental Income (MRI) tax?
MRI is a simplified final tax for residential landlords. It applies at 7.5% of gross rent received (no deductions allowed). Effective from 1 Jan 2024, it replaced the previous 10% MRI regime.
Who qualifies for MRI?
Resident persons (individuals or companies) earning residential rental income between KES 288,000 and KES 15,000,000 per year. Below 288k/year, you fall outside MRI but still must declare on annual returns. Above 15M/year, you switch to normal income tax (with deductions). Commercial rent is always under normal income tax.
When do I file and pay MRI?
By the 20th of the following month. Even if no rent was collected, file a NIL return. From April 2025, KRA introduced eRITS (Electronic Rental Income Tax System) for property registration and monthly filing, full compliance was required by September 2025.
Is MRI final tax?
Yes. You do NOT declare residential rental income again on your annual returns once MRI has been paid. This makes record-keeping simple, but it also means you cannot claim deductions like maintenance, insurance, or interest on the loan financing the property.
Can I opt out of MRI?
Yes, landlords whose annual rent is in the 280k-15M band can elect to be taxed under normal income tax instead (with deductions for maintenance, insurance, agent fees, interest on mortgage etc.). Useful if your expenses are very high. The election must be made in writing to KRA and applies for at least one full year.