Contributed By MMC Africa Law
Real estate sale and purchase transactions are by law subject to taxation. The applicable taxes are stamp duty (payable by the purchaser) and capital gains tax (payable by the seller).
Stamp duty is payable at the rate of 2% of the value of the property for agricultural land and 4% for properties in urban areas.
The following transfers of property are exempt from payment of stamp duty:
Capital gains tax is comprehensively discussed under 7 Tax, below.
Registration costs are not prescribed in statute and vary from one registry to another. They are payable by the purchaser.
Stamp duty is chargeable at the rate of 1% if a property is registered as a company and transfer is by way of shares rather than title.
Gains made on the transfer of shares of private companies within Kenya are subject to capital gains tax and incidental costs are allowable to reduce the tax due.