How stamp duty on land is worked out
Stamp duty is charged under the Stamp Duty Act on instruments such as transfers, leases and charges. On a property purchase, the buyer pays it before the transfer can be registered.
The base. Duty is worked out on the higher of the agreed price and the value assessed by the government valuer. Under the Stamp Duty (Valuation of Immovable Property) Regulations 2020, the buyer can use a government valuer or a private valuer picked by the Chief Government Valuer from an accredited list. The Chief Government Valuer then confirms the value and the duty. A buyer who disagrees with the value can object to the Chief Government Valuer.
The rate. There are two rates: a higher one for land in cities, municipalities and towns, and a lower one for rural land (see the figures box). From 5 April 2024 the Ministry of Lands began charging the urban rate in a long list of gazetted towns and municipalities that had been paying the rural rate, including Kitengela, Kajiado, Ruiru, Kiambu, Limuru, Kabete, Naivasha, Nakuru, Machakos, Murang'a, Kericho, Narok, Kilifi, Watamu and Diani.
Where and how it is paid. Since 27 November 2023, stamp duty on land transactions has been collected by the Ministry of Lands, not the Kenya Revenue Authority. Valuations and payments go through Ardhisasa's Ardhipay module, with payment through eCitizen. Keep the payment receipt: the registry needs proof of stamp duty to register the transfer.
Exemptions. The main one for home buyers is for a first-time home owner buying a house under the government's affordable housing scheme, added to the Stamp Duty Act in 2018. It is tied to the scheme, so do not assume it covers an ordinary first-time purchase on the open market. Other transfers are exempt or relieved under the Act and recent Finance Acts; ask your advocate whether yours qualifies before paying.
Urban and rural rates
- Nairobi, Mombasa, Kisumu and other cities: the urban rate applies.
- Gazetted towns from 5 April 2024: many satellite towns that used to pay the rural rate now pay the urban rate. Kitengela, Ruiru, Kiambu and Naivasha are on the list.
- Rural agricultural land outside gazetted areas: the lower rural rate applies.
What to check
- Is the land inside a city, municipality or gazetted town? That decides the rate.
- Has the government valuation been done, and is it higher than your price?
- Is the payment going through the official eCitizen channel shown on Ardhisasa?
- Keep the stamp duty receipt for the registry.
Risks to know
- Being told to pay stamp duty into an agent's account.
- A sale price written below the real price "to save stamp duty": duty is charged on the government value anyway, and under-declaring is an offence.
- Old guides that say stamp duty is paid on KRA's iTax: that changed in November 2023.
Typical cost or timeline
Stamp duty rate, urban land (cities, municipalities and gazetted towns)
4 % of the higher of price and government value
As of October 2026
Stamp duty rate, rural land
2 % of the higher of price and government value
As of October 2026
Stamp duty vs Capital gains tax
| Aspect | Stamp duty | Capital gains tax |
|---|---|---|
| Who pays | The buyer | The seller |
| What it is charged on | The higher of price and government value | The seller's profit (net gain) |
| Paid to | Ministry of Lands, through Ardhisasa and eCitizen | Kenya Revenue Authority |
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Questions
How much is stamp duty in Kenya?
It depends on whether the land is urban or rural. See the figures box for the two rates.
Is Kitengela stamp duty urban or rural?
Kitengela is one of the gazetted towns charged at the urban rate since 5 April 2024.
How do I pay stamp duty on land in Kenya?
Through Ardhisasa's Ardhipay module, paying through eCitizen. It has not been paid on KRA's iTax since 27 November 2023.
Who pays stamp duty, the buyer or the seller?
The buyer, unless the sale agreement says otherwise.
How is stamp duty calculated?
Multiply the higher of the price and the government valuation by the rate that applies to the area.
Related terms
Sources
- 1. KRA relinquishes stamp duty collection to Lands Ministry Business Daily · checked 13 October 2026
- 2. Change of stamp duty payment channel (public notice, November 2023) Ministry of Lands, Public Works, Housing and Urban Development · checked 13 October 2026
- 3. Kenya's land transfers in gazetted towns and municipalities to be charged stamp duty at 4% EY · checked 13 October 2026
- 4. The Ministry of Lands raises stamp duty on land transfers CMS Daly Inamdar · checked 13 October 2026
- 5. Stamp Duty (Valuation of Immovable Property) Regulations 2020 Kenya Law (National Council for Law Reporting) · checked 13 October 2026
- 6. The Stamp Duty (Valuation of Immovable Property) Regulations 2020: legal alert Oraro & Company Advocates · checked 13 October 2026
- 7. Implementation of the Stamp Duty (Valuation of Immovable Property) Regulations 2020 Bowmans · checked 13 October 2026
- 8. State housing scheme members get 15pc tax relief after Uhuru nod Business Daily · checked 13 October 2026
- 9. Uhuru approves law granting 15% tax relief to affordable housing beneficiaries Citizen Digital · checked 13 October 2026
Cite this definition
"Stamp duty", Kenya Property Centre Property Glossary, last checked 13 October 2026, https://kenyapropertycentre.com/glossary/stamp-duty
You may reuse this definition under CC BY 4.0 with credit to Kenya Property Centre and a link to this page.
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