Stamp Duty Tax - what you don't know
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Wed Apr 16 2025
Stamp Duty
Stamp duty is a charge levied by the government of Kenya on legal papers, typically in the transfer of assets or property.
Who is the collector of stamp duty?
Kenya Revenue Authority (KRA) is mandated to collect stamp duty in Kenya under Section 2 of the Stamp Duty Act (Cap 480).
Who pays for stamp duty?
The Kenyan government imposes a stamp duty on property purchases, calculated according to the property’s current valuation. The rate is 4% for properties within municipalities and 2% for those outside municipal boundaries. To prevent additional fees, it is essential to lawfully transfer the property through land registration. This strategy safeguards against increased stamp duty costs as the property appreciates and ensures that you pay based on its current value, minimizing financial obligations
Instances where Stamp duty is an exemption
When it comes to property purchases, it is critical to take advantage of any exemptions and save money. KRA offers a number of exclusions. Below are some of the exemptions that you need to be aware of Transfer of:
- Land to charitable organizations as gifts.
- Property between spouses. The family property is transferred to the members upon the demise of the family member in whose name the property was registered.
- Land from a Holding Company and its subsidiaries, where the holding company owns not less than ninety percent (90 %) of the shares of the subsidiaries.
- Family property to a company wholly owned by the same family (by virtue of Legal Notice Number 92 of 2007 issued pursuant to Section 106 of the Stamp Duty Act).
Always double-check the latest rates, look into any exemptions you might qualify for, and don’t be afraid to get advice from a pro if things get tricky. Knowledge is power — especially when the tax man’s involved!
