Kenya Revenue Authority (KRA) Will No longer Collect Stamp Duty for Land Transactions

Kenya Revenue Authority (KRA) and the Ministry of Lands and Physical Planning issued a Joint Public Notice on November 17th 2023. Announcing the latest developments that will see the later start collecting Stamp Duty. From November 27th, 2023, all payments for Land transactions attracting Stamp duty shall be made to the Ministry of Lands and Physical Planning through e-Citizen via Pay bill number 222222. Further payment instructions are available when clients click "PAY" on the Ardhisasa Platform.

Currently, the Stamp Duty payable at the Commissioner for Domestic Taxes. For urban areas, the municipalities chargeable at 4% of the property value, and for the rural areas that is away from municipalities chargeable at 2% of the property value. In the current financial year ending in June 2024, the Government of Kenya has projected it will collect stamp duty of 9.53 billion. President William Ruto last year announced plans to exempt the First time Home buyers from paying stamp duty in a bid to ease house ownership costs among workers battling the high cost of living. The administration would seek to strike a revenue balance by removing stamp duty for the fist time Home owners and raising compliance for other property related levies like Land Rates and Rent. Currently, the exemption of stamp duty applies to First time Home buyers of approved affordable housing units following changes to the lawmade by the previous administration.

JOINT PUBLIC NOTICE reads:

In order to make the payment of stamp duty for land transactions a seamless process, the Kenya Revenue Authority (KRA) has now made it possible for the public to make payments at the State Department for Lands and Physical Planning. From November 27, 2023, all payments for land transactions attracting stamp duty shall be made to the State Department for Lands and Physical Planning through e-Citizen via paybill number 222222. Further payment instructions are available when clients click ‘PAY’ on the Ardhisasa platform.