Stamp duty: 4% in Nairobi
Stamp duty is a tax on the transfer, paid by the buyer. It is 4% of the property’s value in cities and municipalities such as Nairobi, and 2% in rural areas. Note that Ruaka (Kiambu), Syokimau (Machakos) and Kitengela (Kajiado) are outside Nairobi County, so confirm the applicable rate with your advocate. The government valuer may assess the value, and duty is paid on the higher of the price and that valuation. First-time buyers purchasing under the government’s affordable housing programme may qualify for an exemption — ask your advocate.
Legal fees: about 1–2%
Advocates’ fees for conveyancing are set by the Advocates Remuneration Order, which uses a sliding scale based on the property value. In practice, buyers commonly pay around 1–2% of the price plus VAT and disbursements. If you take a mortgage, there is usually a separate legal fee for registering the bank’s charge.
Mortgage-related costs
- Valuation fee — the bank’s valuer inspects the property; fees vary with value.
- Loan arrangement fee — often around 1% of the loan, depending on the lender.
- Insurance — mortgage protection (life) cover and building insurance are normally required.
Ongoing costs once you own
- Service charge for apartments and gated estates: commonly KSh 5,000–25,000+ a month in Nairobi.
- Land rates payable to the county each year.
- Insurance and maintenance.
Worked example: a KSh 10 million apartment in Nairobi
| Item | Estimate (KSh) |
|---|---|
| Purchase price | 10,000,000 |
| Stamp duty (4%) | 400,000 |
| Legal fees (~1.5% + VAT) | ~174,000 |
| Valuation, search and registration costs | ~40,000 – 60,000 |
| Total before mortgage fees | ~10.6 million |
Figures are estimates for planning only. Your advocate will give you exact amounts.
Tax relief that helps buyers
If you are paying a mortgage on your own home, you may claim mortgage interest relief against your income tax, subject to an annual cap set by KRA. Check the current limit on the KRA website or with your accountant.
Frequently asked questions
How much is stamp duty on a house in Nairobi?
Stamp duty in Nairobi is 4% of the property value, paid by the buyer. Rural land attracts 2%. On a KSh 10 million apartment in Nairobi, that is KSh 400,000.
Who pays capital gains tax when a house is sold in Kenya?
The seller pays capital gains tax, currently 15% of the gain. It is not a cost for the buyer, though your advocate will confirm it has been handled before completion.
What are the legal fees for buying a house in Kenya?
Legal fees follow the Advocates Remuneration Order sliding scale. Buyers commonly pay around 1–2% of the price plus VAT and disbursements.
This guide is general information, not legal or financial advice. Fees, taxes and rules change — confirm current figures with a licensed advocate, your bank or KRA before you commit.
