iTax for Rental Income: Step-by-Step Filing Guide for Kenyan Landlords

iTax isn't complicated. But it's not intuitive either.

Every month, thousands of Kenyan landlords fumble through the portal, make errors, and end up with incorrect filings or unexpected penalties.

This guide walks you through the exact steps. Bookmark it for next month.

Table of Contents

• Before You Start
• Step 1: Log Into iTax
• Step 2: Navigate to Returns
• Step 3: Select MRI Return
• Step 4: Select Return Period
• Step 5: Enter Rental Income Details
  • Basic Information
  • Income Entry
  • Tax Calculation
• Step 6: Review and Submit
• Step 7: Generate Payment Slip
• Step 8: Make Payment
  • M-Pesa
  • Bank
  • Mobile/Internet Banking
  • Agency Banking
• Step 9: Verify Payment
• Filing When You Have Multiple Properties
• Common Errors and How to Fix
  • Error: "Invalid Tax Obligation"
  • Error: "Return Already Filed"
  • Error: "Invalid Period"
  • Error: Payment Not Reflecting
  • Error: Wrong Amount Filed
• Filing Late Returns
• Monthly Filing Checklist
• Record Keeping for iTax
• Getting Help
• Tips for Smooth Filing
• Nil Returns
• Key Takeaways

Before You Start

Make sure you have:

Account requirements:

• KRA PIN (registered for rental income)
• iTax login credentials
• Mobile phone for OTP

Information needed:

• Total rent collected for the month
• Property details (if first time)

Deadline reminder: MRI returns are due by the 20th of the following month.

• January rent → File by February 20th
• February rent → File by March 20th

Step 1: Log Into iTax

1. Go to itax.kra.go.ke
2. Enter your KRA PIN
3. Enter your password
4. Click "Log In"
5. Enter the OTP sent to your registered mobile
6. Click "Verify"

Common issues:

• Forgot password: Click "Forgot Password" and reset via email
• OTP not received: Check registered number, wait 2 minutes, request again
• Account locked: Visit KRA office with ID

Step 2: Navigate to Returns

Once logged in:

1. Click "Returns" in the top menu
2. Select "File Returns"
3. You'll see a dropdown of return types

Step 3: Select MRI Return

From the tax obligation dropdown:

1. Select "Rental Income Tax (MRI)"
2. Click "Next"

If you don't see MRI as an option, your PIN isn't registered for rental income. You'll need to:

• Click "Registration"
• Add "Rental Income" as a tax obligation
• Wait for activation (usually immediate)

Step 4: Select Return Period

1. Choose the year from dropdown
2. Choose the month you're filing for
   • Filing in February? Select January
   • Filing in March? Select February
3. Click "Next"

Important: You're filing for the PREVIOUS month, not the current month.

Step 5: Enter Rental Income Details

This is the core of the filing:

Basic Information

Residential/Commercial:

• Select property type from dropdown
• If you have both, you may need to file separately or add multiple properties

Property Location:

• Enter county and subcounty
• Be consistent with previous filings

Income Entry

Gross Rent:

• Enter total rent collected for the month
• This is ALL rent, not just from one property
• Include any rent collected late (for previous months)

Example:

• Unit A: KES 25,000
• Unit B: KES 30,000
• Unit C: KES 25,000 (includes KES 5,000 from last month)
• Gross Rent: KES 80,000

Tax Calculation

The system calculates automatically:

Tax Due = Gross Rent × 7.5%

Tax Due = Gross Rent × 7.5%

Example:

• Gross Rent: KES 80,000
• Tax: KES 80,000 × 7.5% = KES 6,000

Verify this matches your expectation before proceeding.

Step 6: Review and Submit

1. Review all entered information
2. Verify:
   • Correct month selected
   • Correct gross rent amount
   • Tax calculation is accurate
3. Check the declaration box
4. Click "Submit"

Before submitting:

• Double-check the period
• Confirm the amount
• Once submitted, amendments are complicated

Step 7: Generate Payment Slip

After submission:

1. Return is now filed (you'll see acknowledgment)
2. Click "Generate Payment Slip" or navigate to Payments
3. Select the return you just filed
4. Generate the E-Slip

The E-Slip contains:

• Payment Reference Number (PRN)
• Amount due
• Payment deadline

Step 8: Make Payment

Pay using any of these methods:

M-Pesa

1. Go to M-Pesa menu
2. Select "Pay Bill"
3. Enter Business Number: 572572
4. Enter Account Number: Your PRN (from E-Slip)
5. Enter amount
6. Confirm with M-Pesa PIN

Bank

1. Visit any KRA-partnered bank
2. Present E-Slip
3. Pay at counter
4. Receive payment receipt

Mobile/Internet Banking

1. Log into your bank
2. Select KRA payment
3. Enter PRN
4. Enter amount
5. Confirm

Agency Banking

Available at various agents (e.g., Equity agents):

1. Present E-Slip
2. Pay cash
3. Receive confirmation

After payment: Allow 24-48 hours for payment to reflect on iTax. Keep payment confirmation.

Step 9: Verify Payment

After paying:

1. Log back into iTax
2. Go to "Payments" → "Payment History"
3. Verify your payment appears
4. Check return status shows "Paid"

If payment doesn't reflect after 48 hours:

• Check PRN was entered correctly
• Contact your payment provider
• Visit KRA with payment proof

Filing When You Have Multiple Properties

For landlords with several properties:

Option 1: Combined Filing

• Add total rent from ALL properties
• File as single return
• Simpler, most landlords use this

Option 2: Property-by-Property

• Some landlords prefer separate tracking
• More work, same result
• Useful for record-keeping

Most landlords use Option 1 — combined total.

Common Errors and How to Fix

Error: "Invalid Tax Obligation"

Cause: Your PIN isn't registered for MRI.

Fix:

1. Go to Registration
2. Add Rental Income obligation
3. Submit amendment
4. Wait for activation
5. Return to file

Error: "Return Already Filed"

Cause: You've already submitted for this period.

Fix:

• Check if you filed previously
• If incorrect, you'll need to amend (more complex)
• If duplicate attempt, no action needed

Error: "Invalid Period"

Cause: Trying to file for future period or very old period.

Fix:

• Select correct month (previous, not current)
• For old periods, may need to visit KRA

Error: Payment Not Reflecting

Causes:

• Wrong PRN entered
• Payment processing delay
• Payment to wrong account

Fix:

• Check PRN on payment receipt
• Wait 48 hours
• Visit KRA with proof if still not showing

Error: Wrong Amount Filed

Cause: Entered incorrect rent amount.

Fix:

• File amended return
• Process is similar but select "Amendment"
• May require KRA office visit for significant changes

Filing Late Returns

Already past the 20th?

Process is the same. Just file and pay.

But: Penalties will apply automatically:

• 5% of tax due or KES 2,000 (whichever higher) per month late
• Interest on unpaid tax

Pay the principal immediately to stop interest accruing. You can dispute penalties separately.

Monthly Filing Checklist

Use this every month:

By the 5th:

• [ ] Reconcile previous month's rent
• [ ] Calculate gross rent collected
• [ ] Note total for filing

By the 10th:

• [ ] Log into iTax
• [ ] File MRI return
• [ ] Generate E-Slip
• [ ] Make payment
• [ ] Save confirmations

By the 15th (backup):

• [ ] Verify payment reflected
• [ ] Screenshot confirmation
• [ ] Archive for records

By the 20th:

• Deadline passes — you should already be done

Record Keeping for iTax

Keep for 5 years:

Monthly:

• Rent collection summary
• iTax return confirmation
• Payment receipt/confirmation
• E-Slip (PDF or screenshot)

Annual:

• Compiled monthly summaries
• Total annual rental income
• Total tax paid
• Any correspondence with KRA

Property management software can generate these summaries automatically.

Getting Help

KRA Support:

• iTax Help Desk: 020 4 999 999
• Email: callcentre@kra.go.ke
• Live chat on iTax portal

KRA Office:

• For complex issues
• Bring: ID, KRA PIN, relevant documents
• Expect wait times

Tax Agent:

• For ongoing filing
• For complex situations
• Cost: KES 2,000-5,000/month

Tips for Smooth Filing

1. File early — Don't wait until the 20th
2. Keep consistent records — Same format every month
3. Set calendar reminders — Multiple before deadline
4. Save confirmations — Screenshot everything
5. Pay immediately after filing — Don't forget the payment step
6. Use the same device — Bookmarks and auto-fill help
7. Know your numbers before logging in — Less time on portal

Nil Returns

What if you collected no rent this month?

If property was vacant:

• You should still file nil return
• Enter zero for gross rent
• No tax due, but return filed

Why bother?

• Shows KRA you're compliant
• Creates consistent record
• Avoids "why didn't you file?" questions later

Key Takeaways

1. Deadline is the 20th — File earlier, not on the day
2. File for previous month — February filing is for January rent
3. Total all rent collected — One combined amount
4. Generate E-Slip and pay — Filing without payment isn't complete
5. Verify payment reflects — Check within 48 hours
6. Keep all confirmations — You'll need them eventually
7. File nil if no income — Consistency matters

iTax gets easier with practice. After a few months, it becomes routine.

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