The Kenya Revenue Authority (KRA) has issued new guidance for Kenyans and other non-residents who earn rental income from property located in Kenya following changes introduced under the Finance Act 2026.
The tax authority said non-resident property owners should review how their rental income is registered, declared and taxed under the new arrangements.
KRA said non-residents earning rental income from property in Kenya are required to register under the applicable simplified framework and file and pay the tax by the 20th day of the month following the month in which the income was earned, unless a resident agent is withholding tax on their behalf.
“Non-residents earning rental income from Kenyan property must register under a simplified framework and file and pay tax by the 20th of the following month, unless a resident agent is withholding on their behalf,” KRA said in a statement shared on X.
What non-resident landlords need to check
KRA is urging property owners living outside Kenya to establish whether their rental income is properly registered with the authority and whether the relevant tax obligations are being met.
This includes checking filing and payment records and confirming that tax is being withheld correctly where a withholding arrangement applies.
The issue is particularly relevant to Kenyans abroad who depend on relatives, agents or professional property managers to collect rent and manage their properties.
Property owners should establish who is responsible for collecting the rent, deducting any applicable tax and remitting it to KRA.
How withholding tax applies
Under KRA’s existing guidance, rent paid to a non-resident in respect of immovable property is subject to 30 per cent withholding tax.
Where the non-resident does not have a permanent establishment in Kenya, the withholding tax is treated as a final tax.
Withholding tax is deducted at source by the person making the relevant payment and remitted to KRA. A withholding certificate is then issued after the tax has been remitted.
This means non-resident landlords should establish whether their tenant, property manager or another appointed person has an obligation to act as the withholding agent.
What changes under the Finance Act 2026?
The Finance Act 2026 framework highlighted by KRA places an emphasis on how non-resident landlords account for rental income and meet their filing and payment obligations.
Where the landlord is required to file and pay the tax directly, the deadline is the 20th day of the following month.
However, KRA says the filing and payment requirement does not apply in the same way where a resident agent is withholding the tax on the landlord’s behalf.
Non-resident landlords therefore need to establish whether they are responsible for filing and paying the tax themselves or whether a resident agent is handling the obligation.
Why the guidance matters
The guidance affects Kenyans living abroad who own houses, apartments, commercial buildings or other rental property in Kenya.
Living outside the country does not by itself remove Kenyan tax obligations arising from income generated by property situated in Kenya.
For non-resident landlords, KRA’s guidance means the focus should be on ensuring rental income is properly accounted for, the correct tax is deducted or paid and the required records are maintained.
Property owners who use relatives, agents or professional managers should also confirm that their arrangements clearly identify responsibility for rent collection and tax compliance.
KRA is continuing to strengthen tax compliance around income generated in Kenya, including income earned by people who reside outside the country.
Non-resident property owners should therefore review their rental arrangements and ensure that their registration, filing, withholding and payment obligations are being handled in accordance with the applicable rules.
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