Diaspora Services · Rental & Property Management
Rent Out Your Kenyan Property — Tax-Compliant and Fully Managed
Tenants screened, rent collected, maintenance dispatched within 48 hours — and your Section 6B tax filed and remitted for you every month.
Finance Act 2026: Section 6B Changes Everything for Diaspora Landlords
- Non-residents earning rent from Kenyan property now pay a 30% final tax on gross rent — with no deductions for expenses, maintenance, management fees or mortgage interest
- Non-residents must register under a simplified KRA framework and file and pay by the 20th of the following month — unless a resident agent withholds on their behalf
- KRA issued new guidance on 25 September 2026 specifically targeting diaspora landlords
- The resident MRI rate rose from 7.5% to 10%
The critical mistake
Many diaspora Kenyans file under the MRI regime — the 10% rate for residents — even though they are non-residents. MRI is strictly for Kenyan tax residents. Non-residents who file under MRI risk the KRA reassessing their entire filing history at 30%, plus penalties and interest.
What we do
We handle your KRA registration under Section 6B, file your monthly returns, and remit the 30% by the 20th. If you appoint us as your resident agent, we withhold and remit on your behalf — you don't need to file separately.
Resident vs Non-Resident — Know Your Regime
| Factor | Resident landlord | Non-resident landlord (you) |
|---|---|---|
| Legal basis | Section 6A (MRI) | Section 6B (new, Finance Act 2026) |
| Rate | 10% of gross rent (residential) | 30% of gross rent (immovable property) |
| Deductions | None | None |
| Filing | Monthly via iTax by the 20th | Monthly by the 20th — or resident agent withholds |
| Status | Final tax | Final tax |
| Registration | KRA iTax | Simplified KRA framework (new) |
| Airbnb / short-term | 5% WHT deducted by platform | 5% WHT is a tax credit; annual return still required |
The Full Rental Lifecycle, Managed
| Service | Detail | Frequency |
|---|---|---|
| Tenant Sourcing | Listings on Property24, BuyRentKenya, Jiji and Facebook Marketplace, with open-house coordination. | As needed |
| Tenant Vetting | Employment verification, reference calls, credit check via the Credit Reference Bureau, and ID verification. | Per application |
| Lease Agreement | Drafted by an independent advocate — rent, deposit (2 months standard), notice period, maintenance responsibilities and termination clauses. | Per tenancy |
| Rent Collection | M-Pesa Paybill or bank transfer. Automated reminders at 7, 3 and 1 day before the due date; non-payment escalates from reminder to formal notice to legal action. | Monthly |
| WHT Remittance | 30% deducted at source and remitted to the KRA within 5 working days, with the receipt provided to you. | Monthly |
| Preventive Maintenance | Quarterly gutter cleaning, AC filter checks, plumbing and electrical inspections; annual roof inspection, paint touch-up and pest control. | Scheduled |
| Reactive Maintenance | Reported via WhatsApp or phone, dispatched within 24–48 hours with before/after photos. Cost estimate before work begins if above KES 5,000. | As needed |
| Utility Management | KPLC, water and internet accounts monitored, with anomaly detection — a 30% electricity spike can mean a fault or a tenant issue. | Monthly |
| Financial Reporting | Monthly statement of rent received, WHT remitted, expenses and net income. Quarterly summaries and an annual tax summary. | Monthly / quarterly |
| Legal Compliance | Landlord-tenant dispute handling, lease renewals, and eviction through proper legal process if ever required. | As needed |
2026 Yield Benchmarks — After Tax
| Property type | Location | Gross yield | Net yield (after 30% WHT + 10% mgmt) |
|---|---|---|---|
| 1-Bed Apartment | Kilimani / Westlands | 6–8% | 3.3%–4.4% |
| 2-Bed Apartment | Kileleshwa / Lavington | 5–7% | 2.8%–3.9% |
| 3-Bed House | Runda / Karen | 4–6% | 2.2%–3.3% |
| Student Housing | Roysambu / Milimani | 10–14% | 5.5%–7.7% |
| Short-Term (Airbnb) | CBD / Nyali | 10–15% | 5.5%–8.3% |
Net yield = gross yield × (1 − 0.30 WHT − 0.10 management fee). The 30% WHT is the single largest drag on diaspora rental returns, which is why we often advise long-term residential leases over short-term for pure income — or factoring the tax into your purchase price.
What Will You Actually Take Home?
Section 6B tax (30%)
KES 24,000
Management (10%)
KES 8,000
You receive monthly
KES 48,000
Indicative only, using the Finance Act 2026 rates above. Your exact position depends on your lease structure and appointment of a resident agent — we confirm it in your discovery call.
Our fee
10% of monthly rent
Recurring monthly. Optional Section 6B tax compliance is KES 5,000–10,000/month. No setup fees, no mark-ups on maintenance — you see every invoice.
Get your property earning — properly
Whether it's one apartment in Kilimani or a portfolio across Nairobi, book a discovery call and we'll map the tax, tenancy and management plan for your situation.
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