Kenya Rental Income Tax Changes: everything we know so far

In a notice dated April 29, 2026, KRA announced amendments to the Draft Income Tax (Residential Rental Income Tax) Regulations, 2026, and the Draft Income Tax (Set Off Tax Rebate for Graduate Apprenticeships) Regulations of 2026. Kenya Rental Income Tax Changes has emerged this Friday as one of the stories drawing attention in Kenya.

Key facts

• In a notice dated April 29, 2026, KRA announced amendments to the Draft Income Tax (Residential Rental Income Tax) Regulations, 2026, and the Draft Income Tax (Set Off Tax Rebate for Graduate Apprenticeships) Regulations of 2026.
• Under the current system, landlords earning between Ksh288,000 and Ksh15 million annually are required to pay a monthly residential rental income tax at a rate of 7.5 per cent on gross rent.
• The draft changes are expected to increase compliance among Kenyans and improve revenue collection, with non-compliant stakeholders facing penalties.
• While the residential rental income tax seeks to improve revenue collection, the rebate for graduate apprenticeship incentivises employers to boost youth employment.
• Despite the existence of the residential Rental Income Tax framework, KRA now intends to streamline its tax crackdown and seal loopholes that have allowed widespread under-declaration of rental income.

What we know

Going deeper, Under the current system, landlords earning between Ksh288,000 and Ksh15 million annually are required to pay a monthly residential rental income tax at a rate of 7.5 per cent on gross rent.

On the substance, the draft changes are expected to increase compliance among Kenyans and improve revenue collection, with non-compliant stakeholders facing penalties.

Beyond the headlines, while the residential rental income tax seeks to improve revenue collection, the rebate for graduate apprenticeship incentivises employers to boost youth employment.

More precisely, despite the existence of the residential Rental Income Tax framework, KRA now intends to streamline its tax crackdown and seal loopholes that have allowed widespread under-declaration of rental income.

It is worth noting that We want to hear from you before finalising the new Residential Rental Income Tax Regulations and the Graduate Apprenticeship Tax Rebate rules," KRA announced.

By the numbers

At this stage, Following the announcement, KRA urged Kenyans to express their input regarding the two tax categories, with the deadline for comments and reservations set for May 25, 2026.

On a related note, KRA to Implement New Tax Filing Deadline in Finance Bill 2026 Changes Fri, 1 May 2026 - 7:13 pm.

Going deeper, KRA to Implement New Tax Filing Deadline in Finance Bill 2026 Changes.

On the substance, KRA to Recalculate Taxes on Suspect Filings Under New Law Fri, 1 May 2026 - 5:50 pm.

The wider context

On a related note, the Kenya Revenue Authority (KRA) has released draft tax regulations that could change how landlords and employers are taxed in Kenya in a move aimed at increasing compliance.

Going deeper, However, the amendments are expected to introduce stricter enforcement, including enhanced digital monitoring of rental income streams and improved data matching.

On the substance, Kenyans.co.ke Weekly Quiz: 10 Questions to Test Your News Knowledge Fri, 1 May 2026 - 4:53 pm.

Beyond the headlines, Treasury Extends Tax Amnesty Deadline to December 2026 Fri, 1 May 2026 - 4:01 pm.

More precisely, Treasury Extends Tax Amnesty Deadline to December 2026.

The bottom line

• The draft changes are expected to increase compliance among Kenyans and improve revenue collection, with non-compliant stakeholders facing penalties.
• While the residential rental income tax seeks to improve revenue collection, the rebate for graduate apprenticeship incentivises employers to boost youth employment.
• Despite the existence of the residential Rental Income Tax framework, KRA now intends to streamline its tax crackdown and seal loopholes that have allowed widespread under-declaration of rental income.
• Searches spiking right now: KRA Announces New Tax Rules Targeting Landlords & Employers, Tax outlook 2026: Navigating Kenya’s evolving tax landscape, Global audit firm explains new KRA rules behind income tax and their implications, How 2026 tax changes will affect businesses.