The Finance Act 2026 added Section 6B to the Income Tax Act, creating a dedicated regime for non-residents earning rent from property in Kenya. It took effect on 1 July 2026.
The rates
- 30% final tax on gross rent from immovable property in Kenya — houses, flats, land.
- 15% on rent from property other than immovable property.
- No deductions: like MRI, it is charged on gross rent.
Common mistakeMRI at 7.5% is available to Kenyan tax residents only. A landlord living abroad who has been filing MRI has been using the wrong regime and should speak to a tax agent about correcting it.
Filing and payment
Non-resident landlords register under a simplified framework, file a monthly return and pay by the 20th of the following month — unless a resident agent is appointed to handle it on their behalf.
If an agent manages your property
Make sure your agent knows your residency status in writing. With agent access in Hodi, the agent sees the same rent roll and statements you do, so the gross figure the tax is based on is never in dispute.
General information, not tax advice. Rules and rates change — confirm with KRA or a registered tax agent before filing. Last reviewed 28 Sept 2026.