← learn · guide · verified as of 2026-07-10
Rental property
Buying property to rent out is the least liquid, highest-entry-cost way to earn income tracked here — a direct purchase, not a security you can sell same-day.
indicative — varies enormously by location; entry cost is the property price itselfweeks to months (a real-estate transaction, not a same-day purchase)risk 3/5
Steps
- 1Research current rental yields by area — see this product's own tracked suburban gross-yield figure on /compare/assets, sourced from the Hass Index.
- 2Budget for the FULL cost: purchase price, legal fees, stamp duty, and ongoing maintenance — none of these are modeled in this product's simplified yield figure.
- 3Complete the purchase through a licensed conveyancer.
- 4Register the tenancy and file Monthly Rental Income (MRI) tax on the rent you collect.
By the end you own a rental property and are registered to file MRI tax on the income.
Costs & taxes
| Item | Amount | Note |
|---|---|---|
| Monthly Rental Income (MRI) tax | 7.5% on gross rent (final tax; annual rental income above KES 288,000 up to KES 15M) | Confirmed against the enacted Finance Act, 2026 (Act No. 19 of 2026): the Bill proposed raising this to 10%, but Parliament deleted that clause before passage — the Act contains no residential MRI change, and KRA's own page states 7.5%. Verified 10 Jul 2026. |
| Purchase costs (legal fees, stamp duty) | Not modeled here | Varies by property and location — this guide covers the mechanics, not a full cost-to-own model. |
Risk
Medium risk with low liquidity: rental income depends on occupancy and maintenance, and unlike every other instrument on this ledger, exiting requires selling a physical asset — there is no same-day way out.
Medium (property income)
See it in the product
Sources
- Suburban gross rental yield 7.4% (satellite towns 5.3%), Q1 2026 — Hass Index — verified MP-A session, see BUILD_LOG · retrieved 2026-07-09
- MRI tax 7.5% on gross rent, final tax (KRA residential rental income page, current and correct) — https://www.kra.go.ke/individual/filing-paying/types-of-taxes/residential-rental-income · retrieved 2026-07-10
- Finance Act, 2026 (Act No. 19 of 2026, assented 23 Jun 2026) contains NO residential MRI rate change — the Bill's 7.5%→10% clause (cl. 23(d)) was deleted before passage; the Act's Third Schedule amendments (s. 21) do not touch the MRI paragraph — https://new.kenyalaw.org/akn/ke/act/2026/19/eng@2026-06-26 · retrieved 2026-07-10
Automated analysis for information & education. Not investment advice. For advice tailored to your situation, consult a CMA-licensed investment adviser.