President William Ruto has announced plans to exempt land transactions valued at Sh1 million or less from stamp duty in a move aimed at reducing the cost of acquiring and transferring property.
Speaking during the Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, Ruto said the National Treasury had prepared proposals to ease the financial burden on Kenyans seeking to own land.
“The National Treasury has prepared proposals to exempt land transactions valued at one million shillings or less from stamp duty and introduce progressive rates for higher-value transactions,” he said.
Kenyans currently pay 4 per cent of the property's value for land in cities, municipalities and gazetted towns and 2 per cent for rural or agricultural land.
Stamp duty is calculated based on the higher value between the agreed purchase price and the government valuer's official market assessment.
Ruto said the proposed changes would make land ownership more affordable, particularly for Kenyans with limited financial resources, while introducing a graduated system of stamp duty for more expensive transactions.
“This will help reduce the cost of acquiring and transferring land, especially for citizens at the bottom of the pyramid, and strengthen every Kenyan’s ability to own property,” he said.
The proposal was among four measures the President announced during the national celebrations, aimed at putting more money in Kenyans’ pockets.
The other proposals include exempting workers earning Sh32,333 or less a month from Pay As You Earn income tax, removing the 25 per cent import duty on mobile phones and expanding internship opportunities for graduates.
The celebrations, hosted by Uasin Gishu, Nandi and Elgeyo-Marakwet counties, honoured Kenyans whose courage and sacrifice secured the country’s independence and called on the current generation to build on their legacy.
The stamp-duty proposal will require the relevant policy and legal processes before it can take effect.
