Property Econs

Land buyers in Kenya must pay stamp duty for land transactions to be deemed valid. This article will help you learn what stamp duty is, stamp duty rates in land transactions, how to pay the duty, and the consequences of failing to pay stamp duty in Kenya.    What is Stamp Duty? The Kenya RevenueAuthority (KRA) defines stamp duty as a tax levied on legal instruments like land transactions, shares, receipts, cheques, marriage licenses, and military commissions.   In the land acquisition context, stamp duty helps the Kenyan Government earn revenue from land sales, leases, and mortgages. The KRA requires the individual, group, or organization acquiring land to pay a certain percentage of the land’s market value as the stamp duty. Stamp Duty Rates in Kenya The Government of Kenya does not charge the same stamp duty rate for all land transactions. Stamp duty rates differ based on a parcel of land’s location, use, and the nature of the transfer.   Currently, th...

Did you know that the Ministry of Land’s Department of Valuation independently calculates the market value of a piece of land on sale to establish the right amount of tax to collect from a sale? Stamp Duty Stamp duty is a tax levied on land transactions. It is also levied on cheques, receipts, military commissions, marriage licenses and shares. It is your duty as a land buyer to pay stamp duty to the government. The Kenyan law tasks the Kenya Revenue Authority (KRA) with stamp duty collection. Therefore, you will submit the tax to the KRA when buying land. Land Valuation for Stamp Duty Calculation When buying land, you agree on the price with the seller. However, the KRA does not necessarily use the buying price you have agreed with the seller when the revenue authority calculates the stamp duty for the land transaction. The government conducts an independent land valuation through the Department of Valuation. The valuation’s goal is to determine the market value of the ...