KRA Issues New Guidance for Kenyans Abroad With Rental Property in Kenya

The Kenya Revenue Authority (KRA) has issued new guidance for Kenyans living abroad 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-residents earning rental income from Kenyan property are required to register under a simplified framework and file and pay the applicable 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.

KRA urged non-resident property owners to review their rental arrangements and confirm that their income is properly registered, declared and taxed under the new framework.

What the new framework means

According to KRA, non-resident landlords should establish whether they are responsible for filing and paying the tax themselves or whether a resident agent is handling the obligation through withholding.

The authority's guidance is particularly relevant to Kenyans living outside the country who have rental properties in Kenya but rely on relatives, agents or professional property managers to collect rent.

Where withholding tax applies, the person making the rental payment is responsible for deducting the applicable tax and remitting it to KRA. A withholding certificate is issued after the tax has been remitted.

Non-resident rental income subject to 30% withholding tax

KRA's published tax guidance states that rental income paid to a non-resident landlord is subject to 30% withholding tax on gross rent.

For a non-resident without a permanent establishment in Kenya, the withholding tax is treated as a final tax, meaning the rental income is not subject to further taxation in Kenya through the ordinary income-tax process.

KRA also lists commercial and residential rent paid to non-residents at a 30% withholding tax rate in its withholding-tax guidance.

Who is responsible for paying the tax?

The responsibility can depend on how the rental arrangement is structured.

KRA says withholding tax is generally deducted at source by the person making the relevant payment. The tax is then remitted to the authority and a withholding certificate issued to the recipient.

This means non-resident landlords should establish whether their tenant, property manager or resident agent is responsible for withholding and remitting the tax.

Where the landlord is required to file and pay the tax directly under the new framework, KRA says the obligation falls due by the 20th day of the following month.

KRA urges property owners to review their tax records

The authority is encouraging non-resident property owners to check their tax registration details, rental-income records and previous filings.

Landlords should also establish whether any applicable withholding tax has been correctly deducted and remitted and ensure they retain the relevant documentation, including withholding certificates.

KRA's broader guidance states that income accrued or derived in Kenya can remain subject to Kenyan tax obligations even where the taxpayer is resident outside the country.

What Kenyans living abroad should check

For Kenyans in the diaspora who own rental property in Kenya, the new framework makes it important to establish:

1. Whether the rental income is properly registered with KRA.
2. Whether the landlord or a resident agent is responsible for filing and payment.
3. Whether applicable withholding tax is being deducted correctly.
4. Whether withheld taxes have been remitted to KRA.
5. Whether withholding certificates and other tax records are available.
6. Whether monthly filing and payment deadlines are being observed where the landlord is responsible for the obligation.

KRA separately states that its residential rental income regime applies to resident persons, while non-resident landlords are excluded from that regime and are instead subject to the applicable non-resident tax rules.

New compliance focus for diaspora property owners

The Finance Act 2026 changes place additional emphasis on how rental income earned from Kenyan property is registered and accounted for by non-resident landlords.

For Kenyans living abroad, the key consideration is therefore not simply where the property owner resides, but how income from property located in Kenya is being collected, reported and taxed.

KRA has advised taxpayers to review their rental arrangements and comply with the applicable registration, filing and payment requirements under the new framework.