Calculate stamp duty payable on property purchases and transfers in Kenya. Applies the correct rate based on property location — 2% for rural/municipality areas, 4% for Nairobi, Mombasa, and Kisumu municipalities.
Stamp duty is a mandatory tax on property transactions in Kenya, governed by the Stamp Duty Act (Cap 480). It is payable by the buyer (or transferee) through the KRA iTax system. The rate depends on the property's location: 4% for properties in Nairobi, Mombasa, and Kisumu municipalities, and 2% for all other areas.
Stamp duty is calculated on the property's market value as assessed by the government valuer, not necessarily the purchase price. If the government valuation is higher than the purchase price, the higher value applies.
Stamp duty is simply the property value multiplied by the applicable rate (2% or 4%). For a KES 10 million property in Nairobi, stamp duty = KES 10,000,000 x 4% = KES 400,000.
Stamp duty must be paid within 30 days of the date of the agreement/transfer instrument. Late payment attracts a 5% penalty plus 1% monthly interest on the unpaid amount.
Stamp duty exemptions exist for government transfers, registered charities, and certain diplomatic properties. The Finance Act has proposed first-time homebuyer exemptions, but implementation details vary.