Residential rent of KSh 100,000 a month attracts MRI of KSh 7,500 at 7.5%.
How MRI works for residential landlords
Monthly Rental Income tax is a simplified, final tax on gross residential rent, charged with no deduction for repairs, agent fees or mortgage interest. It applies to resident landlords earning between KSh 288,000 and KSh 15,000,000 a year in rent and is filed and paid monthly by the 20th, now through KRA’s eRITS system.
The Finance Bill 2026 proposed raising MRI from 7.5% to 10%. Use the rate option under More options to see the difference, and confirm the rate in force with KRA before filing.
Rates used in this calculator
Monthly Rental Income tax
Rate
7.5% of gross rent
Applies to annual rent
KSh 288,000 – KSh 15,000,000
Due
20th of the following month
Frequently asked questions
What is Kenya's Monthly Rental Income tax rate?
MRI is charged at a flat 7.5% of gross rental income received, effective since 1 January 2024 when it was reduced from 10%.
Who has to pay MRI?
Resident landlords earning between KSh 288,000 and KSh 15,000,000 in annual gross rent from residential property fall under the MRI regime. Below that floor, ordinary tax bands apply; above the ceiling, standard income tax with expense deductions applies instead.
Can I deduct expenses like repairs or agent fees from MRI?
No. MRI is charged on gross rent received, with no provision for deducting expenses such as repairs, agent commissions or mortgage interest.
Can I opt out of MRI and use the standard income tax regime instead?
Yes, a landlord may elect in writing to the Commissioner not to be taxed under MRI, in which case the standard annual income tax regime with expense deductions applies instead.