Withholding Tax on Rent Calculator Kenya 2026

Why tax is withheld from rent

Some tenants must hold back part of the rent and pay it to the Kenya Revenue Authority instead of the landlord. The aim is to collect tax early and make sure rental income is declared. The tenant, or the agent who manages the property, is called the withholding agent. The tax withheld is not an extra cost to the landlord: it is a credit against the landlord's own rental income tax.

Who must withhold

Withholding applies where the payer is an appointed agent or one of the categories the law lists, such as companies, partnerships and government bodies. A private individual paying rent from their own pocket generally does not withhold. Residential rent attracts a different arrangement from commercial rent:

• For residential property, appointed agents withhold at 7.5% of the rent when the rent is above the monthly rental income threshold, and that payment counts as the landlord's Monthly Rental Income tax.
• For commercial property, a resident landlord has 7.5% withheld, and a non-resident landlord 30%.

The rates and rules change by Finance Act, so the figures above come from the rates held for this site and show their verification date on the page.

What the calculator does

Enter the monthly rent, the property type and whether the landlord is resident. It then shows the tax to withhold, what to pay the landlord, the tax over a year, and the date to pay KRA. The amount is calculated on the gross rent, not on rent after the landlord's expenses.

A worked example

On commercial rent of KES 100,000 a month paid to a resident landlord, the tenant withholds KES 7,500.00 and pays the landlord KES 92,500.00.

What the tenant must do

1. Deduct the tax when you pay the rent.
2. Pay it to KRA by the 20th of the following month through iTax.
3. File the return, using your own iTax login, and keep the payment records.
4. Give the landlord a withholding certificate, so they can claim the credit on their return.

Late payment leads to penalties and interest, and in some cases the withholding agent becomes personally liable for the unpaid tax.

What the landlord should do

Ask for the certificate every month, and record the amount in your records for the year. When you file your rental income tax return, claim the tax withheld. If the amount withheld is more than your tax for the year, the excess is a credit that can be refunded or carried forward. The rental income calculator on this site has a box for withholding already deducted and shows a credit position if it exceeds your tax.

Points to watch

• VAT on rent. If VAT applies to commercial rent, the withholding tax is calculated on the rent without VAT, but check the lease and the agent's invoice.
• Service charge. Whether service charge forms part of the rent for withholding depends on how it is billed. Ask a tax adviser.
• Agents. A managing agent collecting rent for the owner should confirm whether they are appointed to withhold.

This calculator gives an estimate for information only. Confirm who must withhold, and at what rate, with KRA or a registered tax agent.

When the landlord disagrees

Landlords sometimes object to withholding because it reduces their monthly cash. Explain that the tax is a credit against their own rental income tax, and offer to provide a certificate each month. If the landlord says they are exempt or hold a certificate of exemption, ask for a copy and keep it on file. If they dispute whether the tax applies, check the law or ask KRA before you stop withholding, because the tax can become the payer's liability.

Guides, tools and templates for this topic

Read next: Withholding tax in Kenya explained: rates, agents and credits, Monthly rental income tax or annual tax: which route is better for a landlord?, How to file a Monthly Rental Income return

Related calculators: Rental Income Tax Calculator, Withholding Tax Calculator, KRA Late Filing Penalty and Interest Calculator

Excel templates: Withholding tax schedule

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