Capital gains tax when you sell land or shares in Kenya

Capital gains tax (CGT) applies when you transfer land, buildings or shares in Kenya. It is a final tax, charged at 15% of the net gain under current law.

Calculating the gain

Gain = transfer value − adjusted cost.

The adjusted cost includes the purchase price, incidental costs of acquisition (legal fees, stamp duty, valuation) and the cost of improvements. Incidental costs of sale can be deducted from the transfer value.

When it is paid

CGT is paid by the seller on or before the transfer is registered. The Land Registry will not register a transfer without evidence of payment.

Key exemptions

• transfer of property between spouses, and to immediate family,
• transfer as part of a divorce settlement,
• transfer for the administration of a deceased’s estate, and
• sale of an individual’s residence occupied for the three years before the sale, subject to conditions.

Practical tips

• Keep receipts for the original purchase and improvements.
• Include CGT in your sale planning — it can be significant on land held for decades.

This article is general information, not legal advice on your situation.

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