Home and Land Owners Bracing for a new hit
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The Kenya Revenue Authority (KRA) is intensifying its efforts by targeting residential estates in its quest to collect rental income taxes from landlords.
On November 3, the Kenya Revenue Authority (KRA) initiated a comprehensive data collection process by sending a notification to property owners residing in the extensive Nyayo Estate in Nairobi. With a total of 4,774 units and a well-established ownership system, the Nyayo Estate serves as a perfect setting for the tax authority's current campaign to enlist additional landlords. As per the regulations, landlords who earn an annual rental income ranging from Sh288,000 (equivalent to Sh24,000 monthly) to Sh15 million (equal to Sh1.25 million monthly) are required to submit a monthly tax return, disclosing their overall rental earnings.
“This is to confirm that KRA will conduct a sensitization exercise to create awareness on the monthly rental income at Nyayo Estate Embakasi-Malaika Park Gate D on 11.11.2023 at 9.00 am and thereafter undertake data collection exercise on rental income properties,” reads part of the notices undersigned by KRA’s chief manager in charge of rental income.
President William Ruto's administration has turned to the flourishing property market as a means of generating revenue. To this end, measures have been put in place to enhance the collection of rental income tax. Following this, a tax rate of 7.5 per cent is applied to calculate the amount owed. Agents appointed by the KRA commissioner in charge of domestic taxes are now responsible for withholding tax on rental income, according to a new law.
Previously, landlords were obligated to make the payment by the 20th day of every month, but the new proposal mandates that agents must remit the tax within 24 hours of its receipt. Rental income holds significant importance as a revenue stream for Ruto's regime as they seek to fund their Sh3.93 trillion budget for the Financial Year 2023/24. The Treasury has outlined plans to implement rental income tax measures by analyzing rental properties, utilizing data from the National Lands Information Management System, and introducing a mobile App in conjunction with the iTax system.
Comments
The cracks in Ruto's economic a(DAM)inistration is starting to break.....
About time.This administration answer to everything seems to be about more tax, more KRA regulation.They ain't going to let you earn money unless they have a hand in your pocket!
That will be an extremely easy snooping by the KRA aka the tax man!!!
This is stupid.. if the Kenyan government didn’t help you with mortgage to build your rent houses..
They should get a fuck out of ur building.. corruption in kenya it’s like a cancer.. Obama told them back in 2015. Kenya leadership is full of shit.
How r they gonna catch me n am in the USA.
Why not move in the same gusto into government offices, instututions enclaves, elites and tycoon hiding penthouses in your quest to collect the corruption money that belongs to Wananchi?