How much does it cost to buy property in Kenya beyond the price?
2 November 2026
Buying property in Nairobi typically costs about 5% to 7% on top of the purchase price. The biggest cost is stamp duty, which the buyer pays at 4% in urban areas, followed by legal fees, commonly 1% to 2%. The seller, not the buyer, pays capital gains tax.
Last reviewed November 2026. This is general guidance, not legal or tax advice. Confirm the details with a Kenyan advocate before you commit money.
Stamp duty: the largest cost
The buyer pays stamp duty on the value of the property:
- 4% in urban areas, including gazetted towns and municipalities.
- 2% in rural areas.
Stamp duty is based on the property's value, and the lands office can assess its own valuation. If that's higher than your agreed price, you could owe more than you expected, so ask your advocate before you budget to the shilling.
What that looks like
At the 4% urban rate, before any other costs:
- KES 20,000,000 property: KES 800,000 stamp duty.
- KES 50,000,000 property: KES 2,000,000 stamp duty.
- KES 100,000,000 property: KES 4,000,000 stamp duty.
Legal fees
Guides commonly quote 1% to 2% of the value, with a minimum of about KES 35,000. The rate depends on your advocate and the transaction, so get a written quote before you instruct anyone. VAT may apply on top.
Smaller costs to expect
- Official search and registration fees: small next to stamp duty, but they add up. Use the amounts shown on the official portal.
- Valuation: a valuer's fee, which a bank will usually require for a mortgage.
- Survey: a licensed surveyor to confirm beacons on land.
- Land Control Board consent: where it applies, generally on agricultural land. One guide quotes KES 1,000 for a regular meeting and KES 5,000 for a special one.
- Arrears: make sure unpaid land rent and rates are cleared before completion.
Mortgage buyers also pay the bank's own fees, so ask your lender for a full list.
What the seller pays
Capital gains tax is the seller's cost, at 15% of the net gain. It rose from 5% on 1 January 2023, and it's why some sellers price firmly. Reported exemptions include a main home lived in for at least three years and transfers to close family.
For more on what can go wrong with the deal itself, read how to verify a land title in Kenya.
Frequently asked questions
Who pays stamp duty in Kenya, the buyer or the seller?
The buyer. The seller pays capital gains tax on any gain.
Is stamp duty 2% or 4% in Nairobi?
Nairobi is urban, so expect 4%. The 2% rate is for rural areas, and your advocate can confirm which applies to a particular plot.
Is capital gains tax still 5%?
No. It has been 15% of the net gain since 1 January 2023. Older guides that quote 5% are out of date.
Sources
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