Expect an increase in your house rent as the tax-man targets landlords in the quest to expand Kenya’s revenue base.
Kenya Revenue Authority (KRA) is preparing to register all properties in the country’s major towns with the expectation that it would help catch landlords who are not paying property taxes despite receiving rental income every month.
KRA has promised to catch up with defiant landlords who will not only be forced to pay tax dues but also penalties and interest. Attempts by KRA to use bank accounts to start taxing landlords failed in 2005 as banks refused to cooperate. KRA now plans to use every measure, including mobile money transfer transactions, and even company registration to find the tax cheats.
Landlords will most probably pass this additional expense on to their tenants, so expect massive rent increase.