CONVEYANCING SERIES 1: STAMP DUTY RATES IN KENYA
Stamp duty is a tax levied on legal instruments including instruments used in land transactions and transfer of shares. It is usually payable in different rates depending on the nature of the instrument. In conveyancing the rates are as outlined below:
| No. | Item | Stamp Duty Rate |
| 1. | Registration of Transfers | Urban land (Land within cities and municipalities) = 4% of current market value. Agricultural land (land outside municipalities) = 2% of current market value. Note: The current market value of the land is to be determined by the government valuer upon presentation of the documents at the registry. |
| 2 | Registration of Leases | 1% of the annual rent for a lease of 3 years or less. 2% of annual rent for a lease of more than 3 years. Note: Where a varying rent is payable the amount of the annual rent means the amount of the highest rent payable under the lease or agreement. |
| 3. | Registration of Charge | 0.1% of the amount secured. |
| 4. | Registration of Discharge of Charge | 0.05% of the amount secured in the charge. |
| 5. | Nominal Duty payable on instruments such as Power of Attorney, Trust deed, Agreement for Sale, Partial Discharge and supplemental security | Range between Ksh. 200-500. |
| 6. | Debenture (Document issued by a company to a holder as evidence of a debt/loan the holder advanced to the company) | 0.1% of loan issued to the company |
| 7. | Registration of transfer of shares form | 1% of nominal share value |
When is stamp duty due?
For transaction instruments that are prepared locally, the tax should be paid within 30 days after assessment. and for documents executed abroad and sent for registration locally, Stamp Duty must be paid within 30 days of receiving the documents.
Exemption on payment of stamp duty
Stamp duty is exempted in the following transactions:
- Transfer of land to charitable organizations as gifts.
- Transfer of property between spouses.
- Transfer of family property to the members/beneficiaries on demise of a family member in whose name the property was registered (under succession).
Note: Non-payment of stamp duty results in the invalidity of the relevant transaction and any agreement signed between the parties become null and void, and the same is inadmissible in a Court of Law as evidence.
For more information or assistance in land transactions contact us at info@aowangaadvocates.com or +254794600191
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