The transfer has been signed, the seller is pressing for lodgement, and the documents cannot be registered until stamp duty is assessed and paid. Stamp duty is a frequent point of delay, and of avoidable expense, in Kenyan property transactions.
What is stamp duty and when is it payable?
Stamp duty is a tax on instruments that transfer property, charged under the Stamp Duty Act. In a sale it is payable by the buyer and is assessed on the higher of the price actually paid or the market value ascertained by the Government Valuer. Payment must be made before the transfer can be registered under the Land Registration Act, 2012.
What happens if stamp duty is not paid?
An instrument that has not been duly stamped cannot be registered, and an unstamped or under-stamped instrument is not admissible in evidence to support the transaction it records. Late payment attracts penalties and interest, which accumulate the longer the instrument remains unstamped. Duty is paid through the Kenya Revenue Authority; current guidance and payment channels are published on kra.go.ke.
What are the common stamp duty pitfalls?
- Declaring a price below the real consideration, which invites reassessment, penalties and a defective document trail.
- Paying before a proper assessment has been issued, so funds land in the wrong account and the process restarts.
- Relying on an assumed exemption, limited reliefs exist, for example for certain family transfers, but the conditions are specific and should be verified before you depend on them.
- Leaving stamping until after the instrument is signed, when the document is already exposed to late-payment penalties.
How do buyers keep stamping on schedule?
Build the assessment and payment into the completion timetable rather than treating them as an afterthought, and keep evidence of payment with the original instruments. Because valuation practice and reliefs change from time to time, it is sensible to have a practitioner confirm the position for your transaction. Our conveyancing team in Nairobi handles stamping and registration as part of the transfer process; our practice areas page sets out the wider range of our work.
For guidance on your specific situation, contact CS Advocates LLP, call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.