Letting out a flat is one of the most common investments in Nairobi. Doing it well is mostly about good paperwork and knowing the rules on tax and eviction.

Finding tenants

  • Agents find and vet tenants, and some manage the property for a monthly percentage of the rent. Agree the fee in writing.
  • Listings and “to let” signs work well for flats in busy areas.
  • Vet tenants. Ask for ID, employment details and a previous landlord’s reference.

The tenancy agreement

Put everything in writing: rent and due date, deposit, service charge, who pays which bills, repairs, notice and how the rent can change. The tenancy agreement template covers the usual clauses. Give receipts for every payment, and for the deposit - see the rent and deposit receipt.

Deposits

A deposit of one or two months’ rent is normal. Record the condition of the property with photos at the start. Return the deposit at the end, less only the itemised cost of damage beyond fair wear and tear.

Rental income tax

Resident landlords whose gross residential rent is more than KES 280,000 and up to KES 15,000,000 a year pay a flat monthly rental income tax on the gross rent received, with no deductions. KRA’s published rate is 7.5%. File and pay on iTax by the 20th of the following month.

  • Work it out with the rental income tax calculator.
  • Above KES 15,000,000 a year, rent goes on the ordinary annual return, where expenses can be deducted.
  • Non-resident landlords fall under a separate regime from 1 July 2026, at 30% of gross rent unless tax is already withheld.

Repairs and safety

The landlord is responsible for the structure, roof, plumbing and wiring, and for fixing them within a reasonable time of being told. Keep the property safe: working electrics, secure gates and locks, and clear access in an emergency.

Rent arrears and eviction

  • Talk first. Many arrears are solved with a payment plan in writing.
  • Give proper written notice under the agreement if you want the tenant to leave.
  • Never evict by force. Removing doors or roofs, cutting off water or power, or changing locks to push a tenant out is unlawful, and courts award damages for it. If a tenant will not leave, go through the courts.
  • The Small Claims Court handles unpaid rent up to KES 1 million without a lawyer.

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