Monthly Rental Income tax: what Nairobi landlords pay in 2026

Monthly Rental Income (MRI) tax is a simplified, final tax on residential rent. If you are a resident landlord earning between KES 288,000 and KES 15 million a year in residential rent, you pay 7.5% of the gross rent you receive each month.

How it works

• The rate is 7.5% of gross rent, with no deductions for expenses or mortgage interest.
• It is a final tax: residential rent taxed under MRI is not declared again in your annual return.
• Returns and payment are due by the 20th of the following month.
• Landlords above KES 15 million a year file under the normal income tax regime.
• Non-resident landlords face 30% withholding tax on gross rent.

A worked example

Rent of KES 100,000 a month means KES 7,500 of MRI tax that month, whatever your costs were.

A Finance Bill 2026 proposal to raise the rate to 10% was reported. Confirm the current rate with KRA before you file.

Our managed landlords receive a year-end income summary to make filing simple.