If you live abroad and a flat, a house or a few shop units in Kenya pay you rent, the tax rules on that rent changed this year. On 25 September 2026 KRA posted new Kenya diaspora property rental tax guidance, built on a rule in the Finance Act 2026: non-residents who earn rent from Kenyan property now have to register, file and pay the tax themselves unless someone in Kenya is already withholding it for them. (Citizen Digital, 25 September 2026)
The rate is not new. The way it gets collected is.
What the Finance Act 2026 changed
President Ruto signed the Finance Act 2026 on 23 June 2026. EY's summary of the Act says it introduced "nonresident rental income tax", charged at 30% of gross rental income, under a self-declaration regime. (EY Kenya, Finance Act 2026 tax highlights)
Three points from that summary matter most if you own property at home:
- The tax is on gross rent. It is worked out on what the tenant pays, before repairs, caretaker wages, service charge or loan repayments come off.
- You register through a simplified registration framework, file a return and pay by the 20th day of the month after the month the rent is paid.
- The new tax does not apply to rent that is already taxed through the withholding system.
ALN's analysis, published on Afriwise in July, gives 1 July 2026 as the start date and describes the new tax as similar to the existing withholding regime. (Afriwise and ALN, 16 July 2026)
The old rule is still there
Before this change, tax on rent paid to a landlord abroad was collected one way. The tenant held it back. KRA's guidance on withholding tax on rental income says a tenant paying rent to a non-resident is an agent under section 35(1)(c) of the Income Tax Act, withholds 30% of the gross rent, and remits it by the 20th of the following month. For a non-resident, that 30% is a final tax, meaning the rent is not taxed again. (KRA, Withholding tax on rental income)
EY reads the 2026 Act as adding self-declaration on top of that withholding regime, not replacing it. So there are now two routes:
- Someone in Kenya withholds. A tenant, a letting agent or a property manager deducts 30% before passing on the rest and sends it to KRA. You do not file under the new regime for that rent.
- Nobody withholds. You file and pay the 30% yourself, monthly, by the 20th.
The second route is the one that catches people out. A lot of diaspora rent never goes through a company or an agent who knows the rules. It goes from a tenant to a brother, a cousin or a caretaker, and then onward by M-Pesa or bank transfer. In that setup, nobody may be withholding at all. The Act now puts the duty on you.
What the Kenya diaspora property rental tax guidance asks you to do
KRA's own page on the Act gives non-residents three instructions. Register under the simplified framework. File and pay by the 20th of the following month, unless a resident agent is withholding for you. Review your rental arrangements and follow KRA guidance on registration, filing and payment. (KRA, Finance Act 2026: what it means for you)
The Citizen report adds that KRA wants owners abroad to check three things: that their rental income is registered, what their filing and payment records show, and that withholding is being applied correctly where it applies. KRA's position, in its own words, is that "income accrued or derived from Kenya remains subject to Kenyan tax obligations".
One gap to know about. In July, ALN noted that KRA had not yet published the regulations that set out how the simplified registration works. KRA's September guidance repeats the duty to register but does not walk through the steps. Before you file, check KRA's website for the current procedure, or ask a tax agent who has filed under it.
Working out which route you are on
Start with the money trail for each property, one by one.
Who collects the rent? If it is a registered letting agent or a property management firm, ask them in writing whether they withhold the 30% and remit it to KRA in your name, and ask for the withholding certificates. If they cannot produce certificates, assume nothing has been paid.
Is the tenant a company? Corporate tenants usually run withholding through their accounts team. Ask them for the certificates too.
Does a relative or caretaker collect? This is the most common setup, and the one most likely to fall under self-declaration. Your relative is collecting, not withholding. The tax is still yours to declare.
Do you have more than one property? Different properties can sit on different routes. A flat let through an agent may be covered by withholding while a family plot with three rented rooms is not.
A simple worked example
Say a two-bedroom flat in Ruaka lets for KSh 30,000 a month and your sister collects it in cash from the tenant, then sends it to you. Nobody is withholding. Under the new regime the tax is 30% of the gross rent, so KSh 9,000 for that month, due by the 20th of the next month. What you spend on the caretaker or repairs does not reduce the KSh 9,000, because the tax is on gross rent.
If the same flat were let through an agent who withholds, the agent would send KSh 9,000 to KRA, pass you KSh 21,000 and give you a certificate. You would not file again for that rent.
The figures here are an illustration, not an asking price for Ruaka.
Questions to settle before the next rent date
- Do you have a KRA PIN, and can you still log in to iTax from abroad?
- For each property, who collects the rent, and do they withhold?
- Do you hold withholding certificates for the months since July 2026?
- Is the rent going into an account in your name, so the trail matches what you declare?
- Does your tenancy agreement say who is responsible for withholding?
If the rent is collected by family, put the arrangement in writing. Our guide on caretaker pay and what to put in writing covers the paperwork side, and the post on distress for rent covers what happens when a tenant stops paying.
Where the tax rules meet the property
Tax is one part of owning property from abroad. The others are knowing that the title is clean, that the agent is licensed and that the asking price makes sense. Karibu checks title records, EARB agent licences and asking prices for Kenyans buying at home. If you are thinking about buying a rental unit and want to see what asking prices look like in an area first, you can ask bRRAIn, Karibu's property research assistant, before you commit.
Find out who collects your rent and whether anyone is withholding, before the 20th comes round again.
Sources: KRA, Finance Act 2026: what it means for you. KRA, Withholding tax on rental income. EY Kenya, Finance Act 2026 tax highlights. Afriwise and ALN, Analysis of the tax changes introduced by the Finance Act 2026 (16 July 2026). Citizen Digital, KRA issues new tax guidance for Kenyans living abroad with rental property (25 September 2026).
This article is general information, not legal or financial advice. Speak to a registered tax agent or advocate about your own situation.