Stamp Duty & Transfer Act

Property Sales

STAMP DUTY & PROPERTY TRANSFER TAXES 2025 Stamp duty is a mandatory tax paid to the Kenya Revenue Authority (KRA) during property transfers. Failure to pay invalidates the transfer. 1. APPLICABLE RATES - 4% of Market Value: For properties within Municipalities and Cities (Nairobi, Mombasa, Kisumu, Nakuru, etc.). - 2% of Market Value: For properties in rural areas. - WARNING: In 2025, many previously "rural" areas in Kajiado, Machakos, and Kiambu were reclassified as Municipalities, triggering the 4% rate. 2. VALUATION PROCESS - The "Value" is determined by a Government Valuer, not the sale price. If you buy a house for 5M but the valuer says it's worth 7M, you pay 4% of 7M. 3. LEGAL EXEMPTIONS - Transfers between spouses (Marriage certificate required). - Transfers to children (Birth certificate required). - Transfers to charitable organizations. 4. DEADLINES - Stamp duty must be paid within 30 days of signing the transfer documents to avoid heavy penalties.