Finance Bill 2026: Kuria Kimani dismisses claims of increased rental income tax
By Ndiritu Wanjiru, June 17, 2026National Assembly Finance Committee Chairperson and Molo Constituency Member of Parliament Kuria Kimani has dismissed reports suggesting that the government is introducing higher taxes on rental income, assuring Kenyans that there will be no increase in the tax rate for landlords.
Speaking in the precincts of Parliament on Wednesday, June 17, 2026, Kuria clarified that the amendments are intended solely to simplify tax administration and not to impose additional tax burdens on property owners.
“We have heard people say that there is an increase in taxation for rental income. We want to guarantee the country will not experience increased taxation on rental income,” Kimani said.
The lawmaker further explained that under the current law, tenants renting property from non-resident landlords are required to withhold tax and remit it directly to the Kenya Revenue Authority (KRA). However, this requirement has created challenges because tenants may not always know whether their landlord is a resident or non-resident taxpayer.
According to Kimani, the proposed amendment seeks to transfer that responsibility from tenants to non-resident landlords themselves, making compliance easier and more practical.
“What is happening now is that currently, in the law, any tenants whose landlord is a non-resident person are required to withhold tax and remit it to KRA. The complication to that is the tenant may not know whether their landlord is a resident or a non-resident. And therefore, we are changing that burden from the tenant back to the landlord,” he stated.
Tax rate to remain unchanged
Kimani emphasised that the tax rate applicable to non-resident landlords will remain unchanged despite the administrative adjustment.
“So it is a non-resident landlord that will be required to pay rental income tax at the same rate that they are paying now. Not changing the rate, the same rate that they’re paying now,” he added.
The legislator reiterated that the proposed changes are solely aimed at streamlining tax collection procedures and should not be interpreted as the introduction of new taxes on rental income.
“The tax, the rental income, there is no change. The change that we are talking about is that the tax that is currently being charged,” Kimani said.
The clarification comes amid growing public debate over various tax proposals contained in the Finance Bill 2026, with lawmakers seeking to reassure taxpayers that some of the changes are administrative rather than revenue-raising measures.