Calculate land transfer costs in Kenya with ease. Our Land Stamp Duty Calculator helps you estimate 4% urban or 2% rural stamp duty, plus legal fees, for your property purchase.
Land Stamp Duty Calculator
Disclaimer: Stamp duty is based on the government valuer’s report or purchase price (whichever is higher). Legal fees are subject to the Advocates Remuneration Order.
The Stamp Duty Calculation Formula
In Kenya, Stamp Duty is governed by the Stamp Duty Act (Cap 480). The tax is calculated based on the market value of the property as determined by a Government Valuer, or the purchase price—whichever is higher.
The formulas used are:
- Urban Properties (Within Municipalities): Value × 4%
- Rural Properties (Outside Municipalities): Value × 2%
- Fixed Duty (e.g., Leases or Charges): Usually a flat rate or nominal percentage (0.1% to 1%) depending on the instrument.
How to Use the Land Stamp Duty Calculator
To get an accurate estimate of your closing costs, follow these steps:
- Select Location: Choose “Urban” if the land is within a town or city council (e.g., Nairobi, Nakuru, Eldoret). Choose “Rural” for land in agricultural areas outside municipality boundaries.
- Enter Property Value: Input the agreed purchase price. Note that if the government valuer decides the land is worth more, you will pay duty on that higher valuation.
- Review Estimates: The tool will automatically calculate the Stamp Duty and estimate Legal Fees (typically 1-2% of the value), giving you a total “Acquisition Cost.”
Frequently Asked Questions (FAQs)
1. Who pays the Stamp Duty, the buyer or the seller?
In Kenya, the buyer is legally responsible for paying the Stamp Duty. The seller is responsible for Capital Gains Tax (CGT).
2. When must Stamp Duty be paid?
It must be paid within 30 days of the execution of the transfer document. Late payments attract a heavy penalty of 25% of the duty owed, plus additional interest for every month delayed.
3. Are there exemptions for Stamp Duty?
Yes. Some exemptions include:
- Transfers between spouses.
- Transfer of property to a family-owned company.
- First-time buyers under certain affordable housing schemes (subject to current Finance Act provisions).
- Charitable or religious organizations.
4. Why is the urban rate higher than the rural rate?
Urban areas (Municipalities) usually have higher infrastructure development and service delivery provided by the government, justifying the 4% rate compared to the 2% rate for agricultural or rural land.
5. Can I pay Stamp Duty through M-PESA?
Yes, payments are processed through the Ardhisasa portal or the iTax system, where you can generate a PRN (Payment Registration Number) and pay via M-PESA, RTGS, or debit card.
Important Resources:
Understanding Stamp Duty Payment
Understanding Stamp Duty on Land Transfer in Kenya
Also see:
