The Kenya Revenue Authority (KRA) has shared new draft rules that could change how rental income is taxed and how companies get tax relief when hiring fresh graduates.
In a notice released on Wednesday, KRA said it is planning to update rules on residential rental income tax and also introduce a tax rebate for employers who take in graduates for training.
For landlords, the tax agency says the changes are meant to deal with cases where some people do not fully declare their rental income.
At the moment, landlords earning between Ksh288,000 and Ksh15 million a year are required to pay a 7.5 per cent tax on their rent.
KRA now wants to tighten the system by using better digital tools to track rental income and match data, making it harder to avoid paying tax.
On the other side, the new proposal on graduate apprenticeships is meant to support young people looking for jobs.
Under the plan, employers who hire and train fresh graduates will be allowed to reduce part of their tax using the money they spend on training.
KRA says this move is aimed at encouraging more companies to give young people a chance to gain experience.
The tax agency has now asked Kenyans to give their views before the rules are finalised.
Those interested have until May 25 to send their comments.
KRA says public feedback will help shape the final decision before the new rules are put in place.
