The National Treasury’s Principal Secretary, Dr. Chris Kiptoo, today launched the Electronic Rental Tax Information System (eRITS), a digital platform designed to enhance rental income tax compliance and expand Kenya’s tax base.
Speaking at the unveiling, Dr. Kiptoo applauded the Kenya Revenue Authority (KRA) for the innovation, calling it a timely response to Kenya’s growing fiscal demands. He emphasized that the sustainability of the country hinges on efficient revenue mobilization.
“Kenya must foster a competitive and equitable business environment,” said Dr. Kiptoo. “Innovative solutions like eRITS are essential to improving the taxpayer experience and encouraging compliance.”
Despite previous efforts, rental income tax collection remains significantly below potential. Currently, the government collects Kshs. 17 billion annually—only 17% of the estimated Kshs. 100 billion due. Dr. Kiptoo acknowledged the limitations of existing systems, including the iTax platform and past tax amnesties, in capturing all landlords under the tax net.
To bridge the gap, he urged KRA to adopt decisive, strategic approaches that will bring more landlords into compliance, stating that this is vital to funding the national budget and supporting economic growth.
Kenya’s tax revenue as a share of GDP also lags behind the East African Community’s 25% target. To address this, the government has introduced two new policy instruments: the National Tax Policy and the Medium-Term Revenue Strategy (MTRS), aimed at reforming the tax framework and expanding the fiscal space.
“Our journey forward is demanding,” Dr. Kiptoo remarked. “But with innovation and determination, we can meet our development goals.”
