In Kenya, real estate tax is a critical part of property ownership, investment, and transactions. Whether you’re buying a plot in Ruiru, renting an apartment in Westlands, or selling a villa in Diani, you’ll encounter several taxes and fees managed by county governments and the national Ministry of Lands.
In 2025, Kenya’s real estate tax system is fully digital, transparent, and integrated with platforms like eCitizen, iRev, and Ardhisasa—making compliance easier than ever.
📊 Types of Real Estate Taxes & Fees in Kenya
| Land Rates | Property owner | Annually | 0.1% – 3% of property value | County Government |
| Stamp Duty | Buyer | One-time (on transfer) | 1–6% of property value | National Government |
| Transfer Fees | Buyer | One-time | KSh 1,000 – 50,000 | Ministry of Lands |
| Development Levy | Developer | Per project | Varies by county | County Government |
| Service Charges | Developer/Owner | Annually | KSh 1,000 – 5,000/acre | County Government |
| Capital Gains Tax (CGT) | Seller | One-time (on sale) | 5% of profit (net gain) | Kenya Revenue Authority (KRA) |
1. Land Rates (Annual Property Tax)
The most common tax for landowners.
- Who Pays: All landowners (individuals, companies, trusts)
- Frequency: Annually (usually due by June 30)
- Rate:
- Nairobi: 0.1% – 1.5% of unimproved land value
- Other Counties: Up to 3% (e.g., Kiambu, Nakuru)
- How to Pay:
- Via eCitizen → iRev
- M-Pesa (Paybill: 572572 for Nairobi)
- County revenue offices
✅ Tip: Late payments attract 2% monthly penalty. Unpaid for 3+ years? The county can auction your land.
2. Stamp Duty
Paid when transferring property ownership.
- Rate:
- Individuals: 1% – 4% (residential)
- Companies: 6% (higher for non-residents)
- Leasehold (99-year): 4%
- Exemptions:
- First-time buyers of homes under KSh 1M (limited)
- Spousal transfers
- How to Pay:
- eCitizen → iRev → Stamp Duty
- Pay via M-Pesa, card, or bank
- Upload sale agreement and land search
✅ No stamp duty = no title transfer.
3. Transfer Fees
Charged by the Ministry of Lands for processing ownership change.
- Amount: KSh 1,000 – 50,000 (based on property value)
- How to Pay: Via eCitizen or Ardhisasa during transfer application
4. Development Levy & Service Charges
Fees for subdividing land or building.
- Development Levy:
- Paid by developers for building plan approval
- Varies by county (KSh 50K–500K+)
- Service Charges:
- Paid for water, sewer, and road access
- KSh 1,000 – 5,000 per acre
✅ Both paid via county portals or eCitizen.
5. Capital Gains Tax (CGT)
Tax on profit from selling property.
- Rate: 5% of net gain (sale price – purchase price – improvements – costs)
- Who Pays: Seller (individual or company)
- Exemptions:
- Primary residence (if lived in for 3+ years)
- Inherited property (no CGT on inheritance)
- How to Pay:
- File with KRA via iTax
- Submit sale agreement, title, and valuation
✅ Failure to pay CGT can block future transactions.
🚫 Risks of Not Paying Real Estate Taxes
- Penalties: 2% monthly interest on overdue land rates
- Auction of Land: Counties can seize and auction property after 3+ years of default
- Blocked Transfers: No tax clearance = no sale or refinance
- Legal Action: County may sue for recovery
✅ How to Pay Real Estate Taxes (Step-by-Step)
- Register on eCitizen at www.ecitizen.go.ke
- Link Your Property (Title Deed Number)
- Go to iRev → Select Tax (Land Rates, Stamp Duty, etc.)
- Pay via M-Pesa, Card, or Bank
- Download & Save Receipt
💡 Tip: Set a calendar reminder for annual land rates.
🔍 How to Check Tax Status
- Land Rates: Check via eCitizen or county portal
- Stamp Duty: Verified on Ardhisasa during transfer
- CGT: Confirm via KRA iTax
- Tax Clearance Certificate: Required for property sale
FAQs
Q: How much is land tax in Kenya?
A: Land rates are 0.1%–3% of unimproved land value, paid annually to the county.
Q: Do I pay tax when buying land in Kenya?
A: Yes—stamp duty (1–6%) and transfer fees are paid at the time of purchase.
Q: Is there capital gains tax on property in Kenya?
A: Yes—5% CGT on profit from sale, unless it’s your primary residence.
Q: Can I pay land rates online in Kenya?
A: Yes—via eCitizen, M-Pesa, or your county’s revenue portal.
Q: What happens if I don’t pay land rates?
A: Penalties, legal action, and possible auction of your land after several years.
Q: Are there tax exemptions for first-time buyers?
A: Limited—some counties offer stamp duty waivers for affordable homes under KSh 1M.
Final Word
Real estate tax in Kenya is no longer a bureaucratic burden—it’s a digital, transparent process that protects your ownership and supports public services. With eCitizen, Ardhisasa, and M-Pesa, you can pay, verify, and manage taxes from your phone.
