Ogendo, Tobias2020-02-222022-06-072020-02-222022-06-072019https://ikesra.kra.go.ke/handle/123456789/577PROJ 343.93 OGEThe main issue faced by all tax authorities is that it has never been easy to persuade all taxpayers to comply with the regulations of a tax system. Real estate sector is one of the fastest growing sectors of the economy in Kenya yet taxes collected from this sector have continually been on decline for the last five years. Taxation is the primary source of revenue for governments throughout the world to implement their social and political agendas and to deliver services to the citizens. In Kenya, increased government expenditure and the need to finance government activities using local sources of funds has called for the government to bring into the tax net sectors that have remained untaxed before. In 2012/2013 budget speech a lot of emphasis was put that rental income was subject to taxation. Previous statistics indicated that less than half of landlords and developers had complied with tax requirements. This study was carried out to establish how real estate investors had responded to the new taxation measures and the factors that affect their compliance such as taxation knowledge gaps, tax penalties and cost of compliance to rental income tax among landlords in East of Nairobi region that is Pipeline, Embakasi and Tassia. A sample of 100 respondents were selected to take part in the study using self-administer questionnaire as primary method to collect data since it’s a convenient sampling technique. The data collected was analysed using descriptive and inferential statistics with the help of Statistical Package for Social Sciences version 21 for evaluation of relation between dependent and independent variables. Multiple regression models was adopted. The study found that the considered research variables explain 29.1% of variation in residential rental income tax compliance by estate investors thus the study recommends an additional study on the other factors that are represented by 70% and also influence compliance of residential rental income tax by real estate investors. Again further study also need to be done on the same topic but covering a different location other than in Nairobi so as to determine whether there exist some variances in the findingsenCompliance CostFiscal exchangeReal estateRental incomeProjects