Kenyans living abroad who earn rent from property in Kenya have been given new tax guidance by the Kenya Revenue Authority (KRA) following changes under the Finance Act 2026.
Under the new framework, non-residents earning rental income from property in Kenya must register under a simplified tax arrangement and file and pay the tax by the 20th day of the month after the income is earned, unless a resident agent is withholding the tax on their behalf.
KRA said non-resident property owners should review their rental arrangements and confirm that their income is correctly registered, declared and taxed.
The authority said the new requirements also mean landlords living outside Kenya should establish who is responsible for collecting rent and meeting the related tax obligations.
For non-resident landlords, rental income from immovable property is subject to withholding tax at 30 per cent of the gross rent. KRA states that this is a final tax for non-residents.
Where tax is withheld at source, the person making the rental payment is responsible for deducting and remitting the tax to KRA. A withholding certificate is then issued after the payment is made.
This is particularly relevant to landlords who have relatives, property agents or professional managers collecting rent on their behalf. They need to establish whether the person handling the rent is responsible for withholding and remitting the tax.
KRA has long treated rental income earned by non-residents from property in Kenya differently from the simplified residential rental regime available to resident landlords. Its current guidance lists non-resident landlords as exempt from the residential Monthly Rental Income regime, with their rental income instead subject to the applicable non-resident withholding rules.
The Finance Act 2026 guidance therefore puts greater emphasis on ensuring that non-resident landlords have the correct registration and filing arrangements in place.
For landlords required to file and pay the tax themselves, the deadline is the 20th day of the following month. Where a resident agent is withholding the tax on the landlord’s behalf, the filing and payment requirement applies differently under the new framework.
The changes do not depend simply on where a property owner lives. Rental income arising from property located in Kenya remains subject to Kenyan tax rules.
KRA is urging non-resident property owners to check their registration, filing and payment records and confirm that any withholding arrangements are being handled correctly.
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