By Bradley Shahenza
The Kenya Revenue Authority (KRA) has issued a new directive to employers and employees, emphasizing the immediate application of all tax reliefs, deductions, and exemptions on salaries.
The directive follows recent amendments to the Income Tax Act, which aim to enhance compliance and ensure fairness in tax administration.
In a public notice, KRA instructed employers to identify and grant exemptions to workers holding legitimate tax exemption certificates. The authority said the move seeks to streamline the payroll process and prevent cases where eligible employees are overtaxed.
Employers have also been urged to ensure all applicable reliefs, including personal and insurance reliefs, are correctly reflected in employees’ monthly tax deductions.
At the same time, KRA has rolled out a new Electronic Rental Income Tax System (eRITS) to strengthen the collection of rental income tax from property owners and landlords across the country.
In a notice published in the MyGov newspaper the tax agency urged all landlords to update their property and taxpayer details on the new digital platform.
“KRA wishes to notify the public that it has rolled out an Electronic Rental Income Tax System (eRITS), which will facilitate easier payment of Monthly Rental Income (MRI). The system enables management of properties, filing, and payment of rental taxes in a simple and convenient way,” the Commissioner noted.
The dual directives signal KRA’s broader effort to modernize tax administration through digital systems and ensure that all taxpayers both salaried employees and landlords meet their obligations efficiently. The authority affirmed that full compliance will help boost national revenue while reducing disputes related to tax overpayments and delays.
