Electronic Rental Tax Information Launch

The National Treasury’s Principal Secretary, Dr. Chris Kiptoo, CBS, yesterday officially launched the Electronic Rental Tax Information System (eRITS), a significant initiative aimed at transforming rental income tax compliance in Kenya.The PS commended the  Kenya Revenue Authority for making the innovation a reality.

Dr. Kiptoo observed that as the global economy grows more complex, Kenya must foster a business environment that is both competitive and equitable.He emphasized that the sustainability of the country depends on its ability to mobilize sufficient tax revenues.He reiterated the government’s commitment to efficient public service delivery and expanding fiscal space, noting that innovative tax solutions like eRITS are key to improving taxpayer experience and encouraging compliance.

“Our journey forward is demanding,” he remarked, citing the growing pressures of rising expenditures and public debt. 
To address this, Kenya must broaden its tax base, identify new revenue streams, and optimize collections across all sectors.Despite past efforts, Dr. Kiptoo revealed that rental income tax collection remains low. The government currently collects just Kshs. 17 billion annually from rental income—far below the estimated potential of over Kshs. 100 billion, which represents only 17% of expected revenue.

He acknowledged that the iTax system, which depends on self-assessment, and previous initiatives such as tax amnesties and property data collection, have fallen short of bringing all landlords into the tax net.
Dr. Kiptoo urged KRA to confront these challenges decisively and pursue strategic solutions that ensure all eligible taxpayers fulfill their obligations. This, he said, is vital for funding the national budget and supporting long-term economic growth.

He also pointed out that Kenya’s tax revenue as a percentage of GDP remains below the East African Community (EAC) target of 25%. In response, the government has reviewed the tax policy framework and developed two key policy documents: the National Tax Policy and the Medium-Term Revenue Strategy (MTRS).