Kenya Rental Income Tax Calculator (MRI) 2026

Monthly Residential Income (MRI) tax is a simplified tax regime for Kenyan landlords with annual rental income between KES 288,000 and KES 15,000,000. It replaced the previous rental income tax system effective 1 January 2024 and is designed to make landlord tax compliance simpler.

The MRI tax rate is 7.5% of gross rental income. This is applied to your total rent collected — no deductions are allowed under the MRI regime.

MRI tax is due by the 20th of the following month. For example, rent collected in January must be declared and paid by 20 February. Even in months where no rent is collected, a nil return is required.

No. Under the MRI simplified regime, the tax is calculated on gross rental income with no deductions allowed for repairs, management fees, mortgage interest, or other expenses. This is the trade-off for the simplified flat rate.

If your annual rental income exceeds KES 15,000,000, you cannot use the MRI simplified regime. You must declare your rental income under normal income tax rates using the progressive tax bands, and you are entitled to deduct legitimate expenses. Consult a qualified tax professional.

A late MRI return attracts a penalty of KES 5,000 per month that the return remains outstanding, plus 5% interest per month on any unpaid tax. Filing on time — even a nil return — is always cheaper than the penalty.

Yes. KRA requires landlords to issue eTIMS electronic receipts for all rent collected. Without eTIMS receipts, your tenants who run businesses cannot claim rent as a deductible business expense — making you a less attractive landlord to business tenants.