Kenya Property Tax Guide 2026

Stamp Duty on Property Transfer

Stamp duty is a transfer tax payable when property (land or buildings) is purchased or transferred. The rates are as follows:

• Buyer: 2% of the property value (varies by county; some counties charge up to 4% for commercial property)
• Seller: 2% of the property value (in counties where seller's stamp duty applies)
• First-time buyers: Reduced rates may apply for affordable housing schemes
• Rural land: Typically lower rates apply to agricultural land outside urban areas

Stamp duty is payable to the Kenya Revenue Authority before the transfer can be registered at the Ministry of Lands. The declared value in the transfer instrument is used as the tax base. KRA may challenge the declared value if it is below the market value based on the land rateable value or valuation reports. For example, a property valued at KES 10 million in Nairobi County would attract KES 200,000 (2%) from the buyer plus KES 200,000 from the seller.

Annual Land Rates

Land rates are annual taxes levied by county governments on all properties within their jurisdiction. The rates are approximately 0.5% of the rateable value of the property, though this varies significantly by county. The rateable value is determined by the county valuation roll, which is often significantly below market value. Rates are payable annually in advance. Exemptions apply for government-owned land, religious properties, and public schools. Late payment attracts penalties of up to 5% per month in some counties, and the county may auction the property to recover unpaid rates.

Land Registration Fees

In addition to stamp duty, applicants must pay land registration fees to the Ministry of Lands for processing the transfer. These fees are set by the Land Registration Act and vary based on the property value. Typical fees include:

• Registration fee: ~0.1% of property value (capped at KES 100,000 for high-value properties)
• Consent fee: KES 5,000–20,000 for subdivided land
• Search fees: KES 500–1,000 for official land search
• Valuation fees: KES 5,000–50,000 depending on property value and valuer

Capital Gains Tax on Property

Gains from the sale of property are subject to capital gains tax at a flat rate of 5% (see the capital gains guide for full details). The gain is calculated as the sale price minus the acquisition cost and allowable improvements. The primary residence exemption applies for gains up to KES 3 million. CGT returns must be filed within 30 days of the transfer via iTax, and a CGT clearance certificate is required before the land registry can register the transfer.

No Annual Wealth Tax on Property

Kenya does not have an annual net wealth tax or any tax based on the total value of an individual's property holdings. Land rates are based on the value of individual properties for local services, not an aggregated wealth assessment. There is no wealth tax threshold or reporting requirement for property owners. High-net-worth individuals owning multiple properties in Kenya face no recurring charge on their total property portfolio beyond land rates and rental income taxes.

Rental Income — 10% Withholding Tax

Rental income from residential and commercial property is subject to a 10% withholding tax on gross rent for resident landlords. This is a final tax for individuals whose annual rental income does not exceed KES 288,000 (KES 24,000/month). Above that threshold, the landlord may elect to be taxed under the normal PAYE/CIT regime with allowable deductions. Tenants must withhold the 10% and remit it to KRA via the iTax portal. Non-resident landlords are subject to 30% withholding tax on gross rent (final tax).

FAQs

Do I have to pay tax when I sell my primary residence?

Gains from the sale of a primary residence are exempt from CGT up to KES 3 million. Gains above this amount are taxable at 5%. The property must have been used as your main home.

How is property value assessed for stamp duty purposes?

Stamp duty is based on the declared value in the transfer instrument. KRA may reject the declared value if it is below the market value and require a valuation report from a registered valuer. The official land rateable value is also considered.

Are non-residents taxed differently on Kenyan property?

Non-residents are subject to CGT at 5% on gains, stamp duty at standard rates, and 30% withholding tax on rental income. The buyer must deduct CGT from the purchase price for non-resident sellers and remit it to KRA.

Disclaimer

This guide provides general information about Kenyan property-related taxation for the 2026 tax year. Tax laws, county rates, and regulations may change. Always consult with a qualified Kenyan tax advisor or the Kenya Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.