REVISION OF STAMP DUTY RATES FOR NEWLY GAZETTED URBAN AREAS AND MUNICIPALITIES
Stamp duty is a tax levied by the Government on a range of legal documents, including those pertaining to property transfers. Purchasers bear the obligation of paying for stamp duty on the transfer of property in their favor. Currently, stamp duty is levied by the Government at a rate of 2% of the total value of property in rural areas and at 4% of the value of property in urban areas and municipalities.
On April 4, 2024, the Council of Governors issued a letter enumerating all gazetted urban areas and municipalities within various Counties in Kenya.
The Principal Secretary for Lands, Public Works, Housing and Urban Development, Hon. Generali Nixon Korir, consequently issued a Directive on April 5, 2024, addressed to all land registrars, stating that stamp duty on property transfers within gazetted towns and municipalities will henceforth be charged at 4% in accordance with the Stamp Duty Act.
The import of this is that all properties in the areas that have been listed therein will now be subjected to a stamp duty rate of 4% and not the previous 2%. Further, these properties are also likely to be subjected to land rates in due course subject the respective County Governments Legislation. The public must, therefore, be on the look out for such legislation and/or directives to avoid penalties and fines.
We have attached to this Alert the detailed list of these gazetted urban areas and municipalities for your perusal and information.
At Ngeri, Omiti & Bush Advocates LLP, we prioritize guiding our Clients in all aspects of legal compliance including in tax related matters. Our steadfast commitment to serving our clients’ best interests coupled with our extensive awareness of the subtleties of tax legislation allow us to offer specialized solutions and knowledgeable counsel to help you negotiate the complexity of stamp duty responsibilities. Our clients can trust us to effectively protect their legal and financial interests while meeting compliance requirements.
LIST OF GAZETTED URBAN AREAS AND MUNICIPALITIES
NO. COUNTY URBAN AREA URBAN HIERARCHY
1.Nakuru Nakuru City, Naivasha Molo Gilgil Municipality
2.Kiambu Ruiru Kikuyu Karuri Kiambu Thika Limuru, Gatundu Juja Githurai Lari Kabete Githunguri Municipality
3.Uasin Gishu Eldoret Municipality
4.Kisumu Kisumu City Ahero-Awasi, Maseno Kombewa-Bodi Muhoroni Katito-Pap Onditi Municipality
5. Kajiado Ngong Kitengela Kajiado Municipality
6.Garissa Garissa, Masalani, Dadaab, Bura Municipality
7. Transzoia Kitale Municipality
8. Machakos Mavoko, Machakos,Tala/Kangundo Municipality
9. Kilifi Malindi, Kilifi, Mtwapa, Mariakani,Watamu Municipality
10. Mandera Mandera, El-Wak Municipality
11.Kisii Kisii, Ogembo Municipality
12.Kakamega Kakamega, Mumias Municipality
13.Wajir Wajir Municipality
14.Turkana Lodwar, Kakuma Municipality
15.Meru Meru, Maua, Timau Municipality
16.Nyeri Nyeri Municipality
17.Isiolo Isiolo Municipality
18.Kwale Kwale, Diani, Lungalunga, Kinango Municipality
19.Laikipia Rumuruti, Nanyuki Municipality
20.Busia Busia, Malaba Municipality
21.Migori Migori, Rongo Municipality
22.Bungoma Bungoma, Kimilili Municipality
23.Narok Narok,Kilgoris Municipality
24.Embu Embu
25.Tharaka Nithi Kathwana, Chuka Municipality
26.Kericho Kericho, Litein Municipality
27.Taita/Taveta Mwatate,Voi, Taveta Municipality
28.Homabay Homabay, Oyugis, Mbita,Kendu Bay, Ndiwa Municipality
29.Murang’a Murang’a, Kenol, Kangari Municipality
30.Nandi Kapsabet Municipality
31.Marsabit Marsabit Municipality
32.Siaya Siaya, Bondo,Ugunja Municipality
33.Samburu Maralal Municipality
34.Kirinyaga Kerugoya/Kutus Municipality
35.Kitui Kitui,Mwingi Municipality
36.West Pokot Kapenguria (Makutano) Municipality
37.Lamu Lamu Municipality
38.Nyamira Nyamira Municipality
39.Baringo Kabarnet Municipality
40.Tana River Hola Municipality
41.Makueni Wote, Emali/Sultan Hamud Municipality
42. Vihiga Mbale Municipality
43.Nyandarua Ol Kalou,Engineer, Mairo-Inya Municipality
44.Elgeyo/Marakwet Iten Municipality
45.Bomet BometSotik Municipality
For any further clarifications or assistance on this subject, kindly reach out to us through ckamau@nobadvocates.co.ke with a copy to partners@nobadvocates.co.ke.
Prepared By:
Ngeri, Omiti & Bush Advocates LLP
Shelter Afrique Centre, Wing A, 2nd Floor
Longonot Road, Upper Hill
