KRA issues new tax guidance for Kenyans living abroad with rental property

Writing on X on Friday, September 25, 2026, the new framework provides for a simplified tax regime for non-residents earning rental income from property situated in Kenya. 

KRA says non-resident property owners should review how their rental income is registered, declared and taxed under the new arrangements.

"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 stated.

KRA is urging property owners living outside Kenya to establish whether their rental income is properly registered with the tax authority and whether the relevant tax obligations are being met.

This includes checking filing and payment records and confirming that tax is being withheld correctly where a withholding arrangement applies.

For non-resident landlords, KRA’s existing guidance provides that withholding tax on rent for immovable property is charged at 30 per cent, with the tax treated as final where the non-resident has no permanent establishment in Kenya.

This means property owners living abroad need to establish who is responsible for deducting and remitting the tax, particularly where rent is collected or administered by another person in Kenya.

The new guidance is also significant for non-resident landlords who rely on relatives, agents or professional property managers to collect rent and manage their properties.

Where an arrangement makes another person responsible for handling rental payments and tax obligations, the property owner should establish whether that person is required to withhold and remit tax to KRA.

KRA says withholding tax is deducted at source by the person making the relevant payment and remitted to the authority. A withholding certificate is issued after the tax has been remitted.

The tax authority has also previously stated that rent paid to a non-resident is subject to withholding tax, with the tenant potentially acting as the withholding agent under the Income Tax Act.

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.

However, KRA says the filing and payment requirement does not apply in the same way where a resident agent is withholding tax on the landlord’s behalf.

The changes therefore make it important for Kenyans living abroad to establish whether they are directly responsible for the tax process or whether an appointed resident agent is handling the obligation.

KRA has increasingly expanded its focus on tax compliance among Kenyans living abroad. The authority states that income accrued or derived from Kenya remains subject to Kenyan tax obligations even where the taxpayer is residing outside the country.

For non-resident property owners, the key issue under the Finance Act 2026 changes is therefore not where the landlord currently lives, but how rental income from property located in Kenya is being accounted for and taxed.