Buying, selling, or managing property in Kenya is an exciting investment, but the tax landscape can feel like a maze. At Pezari Realtors Limited, we believe that a well-informed investor is a successful one. Whether you are a first-time buyer or a seasoned landlord, understanding these four key taxes is essential for protecting your margins.
1. Buying Property: Stamp Duty
When you find your dream property through our listings, the first step to ownership is paying Stamp Duty to the Ministry of Lands.
The rates are straightforward: 4% for properties within urban areas and municipalities such as Nairobi, Mombasa, and Kisumu, while rural properties attract a 2% rate.
Our Pro-Tip: Always factor Stamp Duty into your closing costs early. We provide our clients with a detailed closing cost sheet so there are no surprises on handover day.
Source: Stamp Duty Act (Cap 480) and Finance Act updates
2. Selling Property: Capital Gains Tax (CGT)
If you are looking to list your property with us, you’ll need to account for Capital Gains Tax. This is a flat rate of 15% on the profit made from the sale. The calculation is simple: subtract the original purchase price and any improvement costs from the final selling price to determine your taxable gain.
Source: Finance Act 2022 (Amendment of Section 34 of the Income Tax Act)
3. Owning Property: Land Rates and Land Rent
Ownership comes with annual responsibilities. Staying compliant ensures your title remains clean for future transactions.
Land Rates are paid to the County Government for local services, while Land Rent is paid to the National Government for leasehold properties. Following the Land (Amendment) Act 2024, more properties now fall under this category.
How we help: For our management clients, we handle the tracking and payment of these rates to ensure your investment remains in good standing with the authorities.
Source: National Rating Act 2024 and Land (Amendment) Act 2024
4. Renting Out Property: Monthly Rental Income (MRI) Tax
For landlords, the tax authorities require a portion of your monthly revenue. If your gross rent is between KES 288,000 and KES 15 million per year, you pay 7.5% of your gross rent every month.
Source: Section 6A of the Income Tax Act, as amended by the Finance Act 2023
Summary Table for 2026
| Tax Type | Rate | Who Pays? | Pezari Realtors Service Connection |
|---|---|---|---|
| Stamp Duty | 2% – 4% | The Buyer | Conveyancing Coordination |
| Capital Gains Tax | 15% of profit | The Seller | Accurate Property Valuation |
| Rental Income Tax | 7.5% | The Landlord | Property Management & Records |
Why Partner With Pezari Realtors Limited?
Tax laws change, but your investment goals shouldn’t have to. At Pezari Realtors Limited, we don’t just find you a property—we help you manage the entire lifecycle of your investment. From identifying high-yield areas to ensuring your tax filings are accurate through our network of experts, we make real estate simple.
For more information on our services or to discuss your property investment needs, contact Pezari Realtors Limited today.