NAIROBI, Kenya – The Government’s rollout of the Electronic Rental Income Tax System (eRITS) has been hailed as a transformative step towards a smarter, more transparent tax system.
Principal Secretary for National Treasury, Chris Kiptoo, described the initiative as a significant milestone in promoting equity and fostering economic growth.
“This is not just about collecting more taxes,” Kiptoo said. “It’s about creating a system where compliance is intuitive, and every citizen feels part of the nation-building process.”
The impact of eRITS is expected to extend beyond tax collection. Athman Said, representing the Principal Secretary of the State Department for Housing and Urban Development, highlighted the platform’s potential in formalizing the real estate sector—traditionally viewed as informal and hard to regulate.
“With eRITS, the government is not just asking landlords to pay taxes—it’s offering them a user-friendly, accessible platform that makes compliance a seamless part of doing business,” he remarked.
KRA Commissioner General Humphrey Wattanga underscored that eRITS is primarily an empowerment tool, not one of strict enforcement.
“Our vision is to turn tax compliance into a culture,” he said, emphasizing that the system is designed to reduce administrative burdens while sustainably increasing revenue collection by integrating with existing digital platforms like eCitizen and Gava Connect.
The launch of eRITS coincided with a policy shift that saw the Monthly Rental Income (MRI) tax rate reduced from 10% to 7.5%, effective January 1, 2024.
The MRI affects landlords earning between KSh288,000 and KSh15 million annually. This adjustment has already yielded positive results, as KRA collected Sh14.4 bn in MRI taxes in the 2023/2024 financial year—a 5.2% rise from the prior year.
The convergence of advanced technology and progressive tax policies underscores the Government’s commitment to modernizing Kenya’s fiscal landscape, driving both compliance and economic growth.
