landlords expected to pay rental income tax

President William Ruto’s administration has highlighted the real estate sector as one of the finance avenues worth exploiting.

 The government has rolled out plans to register landlords within Nairobi County in a move to raise more money to finance the 2023/24 budget.

The registration exercise was set to commence on Wednesday, October 18.

As per government regulations, landlords are expected to pay rental income tax totaling 10 per cent of the gross rent tenants pay

KRA has called on the public to cooperate and provide the information required during the exercise.

The county has 17,000 houses where tenants pay between Sh2, 000 and Sh20, 000 monthly rents depending on the location.

Nairobi county housing director Marion Rono back then said the debt had been accrued by tenants residing in 16,746 houses belonging to City Hall.

It was revealed that defaulters were the biggest contributors to the dwindling collections with tenants in houses in Maringo and Woodley estates.

In addition, landlords in other areas within the Nairobi metropolis, such as Syokimau in Machakos, will participate in the exercise.

Furthermore, landlords targeted by the drill were urged to cooperate with government officials by using all relevant documents.

“The tax officials conducting the exercise will identify themselves using their ID cards which can be verified by keying in the USSD code *572#,” the message read in part.

Under government regulations, landlords are expected to pay rental income taxes totaling 10 percent of the gross rent paid by tenants.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.