Property managers and landlords in Kenya may face KRA audits or queries related to rental income, withholding tax, and compliance. Having orderly, complete records makes the process smoother and reduces risk. This article outlines essential steps to get your property records audit-ready.
What KRA may ask for
KRA may request evidence of rental income, expenses, tax withholdings (e.g. from non-resident landlords), and compliance with eTIMS where applicable. They will expect records that are consistent, dated, and traceable—ideally in a proper ledger rather than scattered spreadsheets and slips.
Steps to be audit-ready
- Maintain a proper general ledger — All rental income and related expenses should be recorded in one system, with clear categories and dates. Property management software that includes accounting keeps everything in one place.
- Reconcile bank and M-Pesa regularly — Ensure every payment is matched to the correct tenant and invoice. Unreconciled or missing entries raise red flags.
- Keep supporting documents — Invoices, receipts, tenancy agreements, and payment confirmations should be filed (digitally or physically) and easy to retrieve.
- Use eTIMS where required — If you are required to issue eTIMS invoices, ensure your process is consistent and that you have a clear trail of what was issued and when.
- Run reports periodically — Income statements, collection reports, and arrears aging should be run and reviewed so you know your numbers and can explain them if asked.
How software helps
Platforms like Nyumba Zetu combine rent collection, invoicing, and accounting in one place. Payments are matched automatically, the general ledger stays current, and you can generate financial and collection reports on demand. That gives you a single source of truth for an audit. For more on compliance and features, see KRA eTIMS & Compliance and property management software for Kenya. Request a demo to see how we can help you stay audit-ready.