The rate applicable for MRI is 7.5% on the gross rent received and is considered a final tax.

Rental income from commercial property and non-resident landlords is exempt from MRI.

Deadline Date: Payable within 5 days after the deduction is made.

Penalty for late filing: 5% of the tax due or KES 2,000; whichever is higher for individuals and 5% of the tax due or KES 20,000; whichever is higher for body corporates.

Penalty on late payment: 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.