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Stamp Duty and Capital Gains Tax on Kenyan Property
6 min read · Updated 15 October 2026 · More property tools
Buying or selling property in Kenya involves more than the asking price. Stamp duty, legal fees and taxes can add a meaningful amount to the cost of a purchase, and a tax bill applies to the gain when you sell.
This guide covers the main transaction costs, the current stamp duty rates and how Capital Gains Tax is worked out on a disposal.
Stamp duty on a property transfer
Stamp duty is a tax on the transfer of property and is normally paid by the buyer. It is charged on the value of the property as assessed by a government valuer, which may differ from the negotiated price.
Stamp duty rates
| Location | Rate | Charged on |
|---|---|---|
| Urban (within a municipality or city) | 4% | Value of the property |
| Rural (outside a municipality) | 2% | Value of the property |
Good to know: Stamp duty is assessed on the government valuation, so an undervalued transfer can still be assessed at market value.
Other costs when buying
- Legal fees for conveyancing, usually charged on a scale based on the property value.
- Valuation fees, where a bank or government valuer is required.
- Land rent and rates clearance, plus any outstanding service charges.
- Registration and consent fees at the lands registry.
- Mortgage arrangement fees if you are financing the purchase.
Capital Gains Tax when you sell
Capital Gains Tax (CGT) is charged at 15% of the net gain when you dispose of property. The net gain is the selling price minus the adjusted cost and the incidental costs of buying and selling.
The adjusted cost includes what you originally paid plus costs such as stamp duty, legal fees and capital improvements. Incidental costs include agent commissions and conveyancing fees on the sale.
Worked CGT example (urban property)
| Item | Amount |
|---|---|
| Selling price | KSh 7,000,000 |
| Purchase price | KSh 5,000,000 |
| Stamp duty (4%) | KSh 200,000 |
| Buying legal fees | KSh 150,000 |
| Selling costs | KSh 150,000 |
| Net gain | KSh 1,500,000 |
| CGT at 15% | KSh 225,000 |
Exemptions and reliefs to know
- A principal private residence, where you have lived in the property, is generally exempt from CGT.
- Transfers between spouses and transfers to certain charitable bodies may be exempt.
- Property held as trading stock is taxed as business income rather than CGT.
- CGT is declared and paid through iTax, and a payment slip is normally required before the transfer is registered.
Good to know: Keep records of the purchase price, stamp duty, legal fees and any improvements. These reduce your taxable gain and support the figure you declare.
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Property Buying & Selling Costs in Kenya FAQs
Who pays stamp duty in Kenya?
Stamp duty on a property transfer is normally paid by the buyer, based on the value of the property as assessed by a government valuer. The rate is 4% for urban property and 2% for rural property.
How is Capital Gains Tax calculated on property in Kenya?
CGT is 15% of the net gain. The net gain is the selling price minus the adjusted cost (purchase price plus costs such as stamp duty, legal fees and improvements) and the incidental costs of the sale.
Is there CGT on selling your own home?
A principal private residence, where the owner has lived in the property, is generally exempt from CGT. Other property disposals are normally taxable unless a specific exemption applies.