now how do expect me a tenant to react to your post? stress.
Tenants on one side and owners on the other.
We are all lamenting.

tax on rental income has always been there.check your old income tax return and slap yourself for me if you have been calling other people tax evaders

Yes we empathise with you but we the tenants need somebody to listen to our cries as well.
An increase in rent means me digging deeper into my pockets yet salary iko vile vile. And yes we know that you guys have a million loans to repay.
That is the cost of investing in real estate.

ok now please tell me,how it works
Say you have 3 units earning you the 150k.
2 units @ 60k
1 unit @ 30k

how do you spread your 45k increase across the 3 tenants?

My landlady has a couple of houses and some cost more of course.I wonder how the increase shall be effected if she decides to hike.
I hv started selling some mandazis just incase.

I thot u'd pay tax on the 30K? And shame on you for not paying taxes yet expecting services from the govt.....Bure kabisa

Let's get it right.....It won't work for landlords to pass any expenses to the tenants since the tax increase involved will be proportional....Simply put,if Essyk is currently paying Kaigangio 30K for her crib,tax would amount to 10k,thus KaigZ keeps 20K (70%).......If Kaigz now increases the rent to 45K,tax involved is 15K and Kaigz keeps 30K (Which is still 70%).It's a no win situation,for the more they increase the rent,so by a similar proportion do they increase Githae's kitty.....and why shouldn't they pay?.They are Kenyans and like my granny would say,"Gutiri wa nda na wamugongo:.....Waripe !

did they have to shout that loud that they were going to enforce this rental tax, they should have done the mapping and started enforcing without making too much noise, now they have given landlords an excuse to raise rent - am sure even the ones who were paying the tax before will have an excuse to increase rent.

i borrowed money to buy a plot and i paid the government the stamp duty (form of tax) and repaid the loan in 5 painful years...you tenant were enjoying your full salary...

i borrowed even more to carry out the construction of the rentals, paid the taxes (VAT, cess and others on materials and consultancy services)and i am repaying the loan (for the next 20 years)...you tenant are still enjoying your full salary..

now if i start paying tax, i will repay my loan in a period of 30 years (i doubt i will still be alive), i will be forced to dig into my pockets to repay the loan (bad business) for 30 years while you tenant still enjoy your salary!!!

pig githae can go to roast in hell...better expand your mandazi business...i am on my way with the rental increase notice on my hand...hakuna huruma!! mtaniongezea pesa!!!

Kaigangio....You chose to do those things so I don't see why anyone should feel sorry for you.

What you are refusing to accept and your landlord brethren is that you are a tax evader.

You were supposed to pay taxes...You never have. My advice to you is to swallow your pride and pay the tax. Otherwise you are on the way to being a criminal.

To the tenants out there please don't fret.

Landlords can't increase rents willy nilly. There must be a lease somewhere. Hata kama ni ya mabati. The landlord just can't come in the morning and tell you I'm increasing rent.

If he does, that's very good. This is what you do.

If he increases the rent and you know its coz of the taxes. Get a lawyer and fight it in court. As the case is being determined a good lawyer can even get the rentals stopped. You may not even need a lawyer for this. Ask the court clerks, they will help you.

You have a case if you show that the landlord is maliciously trying to use to pay his taxes.

I know of cases that have dragged in those courts for months with the landlord not getting a single penny of rent. Just find out your rights and no landlord will dare.

As the case in going please inform the KRA of someone who's not been paying their taxes for a while. They'd be happy to accomodate you.

It is a foolish landlord who thinks that the way to beat tax is to increase income. Very foolish indeed.

Fortunately not all landlords are in your debt crisis.

As long as there is a free market economy, there will always be options. Mr Market will have the final say.

@kaigangio I do feel for you but I guess we are having a failure to communicate.

VAT is a tax that is SUPPOSED to be passed on to the consumer. If you don't buy goods or services, then you won't pay that tax.

Rental income is not new. It has been in Kenya since independence. So there has been no tax increase.

It's just that you have not been paying it, hence evading taxes, hence a criminal if proven in a court of law.

Kaigangio its ok for you to increase your rents. But I would hazard to guess that these aren't the days of harassing tenants with auctioneers.

So therein lies the warning from Githae. They haven't completed gathering info on who should pay income tax. But I'm guessing if you increase your rents now, your tenants will complain and KRA will surely know.

Lipa ushuru jameni. If you increase rents some guys will stay other may leave. Lakini ushuru ripa!