Rental income is often seen as passive, but KRA treats it as a regular obligation with fixed dates. Missing one costs a penalty that is larger than the tax on a small rent. A simple calendar solves the problem. This guide builds one you can copy, and explains what happens at each date.

Every month: by the 20th

If you pay Monthly Rental Income tax, a return and payment are due by the 20th of the month after the rent is received. The tax is 7.5% of gross rent, and you pay it through iTax with a payment slip. Read how to file a monthly rental income return for the clicks. File a nil return in months with no rent: see nil returns explained. Late filing and late payment bring penalties, which the KRA penalty calculator estimates for any month you may have missed.

Every month: collect and record

  • Issue a receipt for each rent payment.
  • Update your monthly rental income tracker.
  • Save M-Pesa or bank evidence in a folder named by month.
  • Note repairs, agent fees and bills, even if MRI means you cannot deduct them, because they matter if you switch to annual tax later.

January to March: set up the year

January is the time to review the lease dates, decide rent increases with proper notice (see how to increase rent fairly) and renew insurance. Gather your records for last year's return. If you moved from MRI to annual tax or the reverse, confirm the change on iTax.

April to June: the annual return

Individual landlords must file an annual income tax return by 30 June, covering the previous calendar year. Rent already taxed under MRI is not taxed again, so MRI landlords with other income file the annual return for that income, and should ask KRA whether their registered obligations still require one. Landlords on annual tax compute profit: rent less allowable expenses, then tax at the normal rates, and credit any tax paid in advance. Our the 30 June tax deadline guide explains the process, and the rental income annual tax computation workbook helps with the sums.

July: land rates and county charges

Many counties issue land rate bills in the new financial year starting in July, and they offer discounts or charge penalties depending on payment dates. Check your county's schedule and read land rates and county property charges. Land rates are a deductible expense for landlords on annual tax.

Instalment tax for annual-tax landlords

If your expected tax for the year exceeds the threshold for instalments, you pay in four instalments on the 20th of the fourth, sixth, ninth and twelfth months of your year. For calendar-year landlords these fall on 20 April, 20 June, 20 September and 20 December. Estimate them with the instalment tax calculator.

Withholding tax on rent

If your tenant is a company, a government body or an appointed agent, they may deduct withholding tax from your rent and pay it to KRA by the 20th of the next month. Ask for the withholding certificate each month. The tax is a credit against your annual liability. See withholding tax on rent.

VAT on commercial premises

If you let commercial premises and your income from them exceeds the VAT registration threshold of KES 5,000,000 a year, you must register for VAT and file a return by the 20th of each month. The rules are in VAT on commercial rent.

Year-round: records and insurance

Keep leases, receipts, bills and returns for at least five years. Renew building insurance before it lapses and diarise any lease expiry dates. A single calendar covering every date is available in the KRA filing and payment calendar.

A one-page calendar to copy

When What
20th monthly MRI return and payment, or WHT/VAT if applicable
20 Apr, 20 Jun, 20 Sep, 20 Dec Instalment tax (annual-tax landlords)
30 June Annual income tax return
July Land rates for the new financial year
Before expiry Insurance and lease renewals

Frequently asked questions

What if I forget to file MRI for a month? File as soon as you notice. The penalty grows with the delay, and the interest on unpaid tax runs each month.

Do I still file a return if all my rent was taxed under MRI? MRI is a final tax on that rent, so it is not taxed again. If you have other income you file a return for it, and you should confirm with KRA which returns your registered obligations require.

Can I pay MRI on a quarterly basis? No. The return and payment are monthly, due by the 20th of the following month.

Who files if the property is co-owned? Each owner is responsible for their share of the rent and files their own return, unless they have formed a company or partnership.