KRA targets landlords in quest to expand revenue base

KRA Commissioner General John Njiraini

The Kenya Revenue Authority (KRA) has announced that it will henceforward target landlords in the drive for new revenues.

KRA’s Commissioner General John Njiraini said on Thursday that the Authority was preparing a register of all properties in Kenya’s major towns in readiness for a crack down on landlords who are currently not paying taxes despite receiving monthly rental income.

“We have sent out demand letters to the concerned owners and would like to warn others that unless they pay up, we will catch up with them and they will pay not only the taxes due but also penalties and interest,” said Mr Njiraini.

The move, which is aimed to net billions of shillings in rental income taxes, puts tenants at the risk of huge rental increases.

Mr Njiraini said KRA will conduct its own survey countrywide in search of tax cheats.

“We will use every measure, including mobile money transfer transactions and company registrations to catch tax cheats,” he said.

In 2005 KRA announced plans to use bank accounts to start taxing landlords but the move never yielded results after banks refused to cooperate.

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