Tax explainer · Sources checked 23 September 2026
A property’s selling price and the taxable gain are different figures. Kenya Revenue Authority’s capital gains tax guidance states that the rate is 15% of the net gain, with the transferor responsible for declaring and paying it.
KRA’s calculation takes account of the transfer value, relevant transfer costs and the adjusted acquisition cost, including qualifying acquisition and improvement expenses. The treatment of a real transaction depends on the applicable rules and evidence.
A simple illustration
Suppose a transaction has a net taxable gain of KSh1 million after all allowable adjustments have already been established. Applying a 15% rate gives KSh150,000. This illustrates the arithmetic only; it does not establish which expenses are deductible or whether a particular transfer is exempt.
The useful task before completion is therefore to organise the acquisition documents, records of qualifying expenditure and the proposed sale details. Missing records can make a seemingly straightforward calculation harder to substantiate.
Keep different transaction charges separate
Capital gains tax should not be confused with stamp duty. KRA’s stamp-duty guidance addresses instruments and transactions subject to that separate charge and identifies circumstances in which exemptions may apply.
Ask an appropriately qualified adviser to explain the applicable tax point, available exemptions and filing obligations before the transfer proceeds. Avoid assuming that a calculation used by another seller applies unchanged to your property.
This is a general explanation of KRA’s published guidance, checked on 23 September 2026, not a tax assessment for an individual transaction.
Reporting note: Prepared with AI assistance from the official sources linked in this article. Photo: Abhishek Singh from Pune, India / Wikimedia Commons, CC BY-SA 2.0. Housing in Nairobi. Archive photograph; not a property listing. Resized for display.
