NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has issued new guidance for Kenyans living abroad and other non-residents who own rental property in Kenya following changes introduced under the Finance Act 2026.
The new framework provides for a simplified tax regime for non-residents earning rental income from property situated in Kenya.
KRA said non-resident property owners should review how their rental income is registered, declared and taxed and establish whether they are required to file and pay the tax themselves or whether a resident agent is handling the obligation.
“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 posted on X on Friday, September 25.
KRA Tells Diaspora Landlords to Check Tax Status
The tax authority is urging Kenyans living outside the country to establish whether their rental income is properly registered with KRA and whether all relevant tax obligations are being met.
Property owners have also been advised to check their filing and payment records and confirm that tax is being withheld correctly where a withholding arrangement applies.
The guidance is particularly relevant to landlords who have relatives, agents or professional property managers collecting rent on their behalf.
Non-Resident Rental Income Subject to Tax
KRA’s existing guidance provides that withholding tax on rent paid to a non-resident is charged at 30 per cent.
The tax is treated as final where the non-resident landlord does not have a permanent establishment in Kenya.
This means Kenyans living abroad who earn rental income from property in Kenya cannot assume that living outside the country removes them from Kenyan tax obligations.
The relevant consideration is that the income is derived from property situated in Kenya.
Who Should Deduct and Pay the Tax?
A key issue for non-resident landlords is determining who is responsible for deducting and remitting the tax.
Where rent is subject to withholding tax, the person making the relevant payment may be required to deduct the tax at source and remit it to KRA.
KRA says a withholding certificate is issued after the tax has been remitted.
This can become particularly important where a landlord has appointed a resident agent, property manager or another person in Kenya to collect rent.
Property owners should establish whether the person handling the rental income has an obligation to withhold and remit the tax on their behalf.
New Filing Deadline for Non-Resident Landlords
Under the Finance Act 2026 framework highlighted by KRA, non-resident landlords who are required to file and pay the tax themselves must do so by the 20th day of the month following the month in which the rental income was earned.
For example, rental income earned during September would generally be subject to filing and payment by October 20 where the landlord is responsible for the tax directly.
The requirement operates differently where a resident agent is withholding tax on behalf of the non-resident landlord.
KRA said non-resident landlords should therefore establish which arrangement applies to their individual circumstances.
Residents, Agents Have Role in Rental Tax
The tax obligations can extend beyond the property owner where another person is involved in collecting or administering rental payments.
A tenant or other person making a payment to a non-resident landlord may, depending on the applicable tax rules and circumstances, have withholding responsibilities.
Similarly, a resident agent appointed to manage the property may be responsible for withholding and remitting tax where the arrangement and law require it.
Non-resident landlords are therefore being encouraged to establish clearly who is responsible for each stage of the tax process.
