Capital Gains Tax (CGT) in Kenya was reintroduced in 2015 and applies to the profit made from the transfer of property located in Kenya.
What is Subject to CGT?
- Land and buildings (commercial, industrial, and residential)
- Listed securities on the Nairobi Securities Exchange (NSE)
- Goodwill and certain intellectual property
- Interests in a company where 20%+ of assets are land
Current Rate
As of 2023, the CGT rate on land and buildings is 15% of the net gain (up from 5%). Listed securities are taxed at 5%.
How is the Gain Calculated?
Net Gain = Transfer Value − (Cost + Allowable Expenses)
Allowable expenses include purchase price, legal fees, stamp duty paid on acquisition, and improvements made to the property.
When is CGT Due?
CGT must be paid within 30 days of the transfer date. The transferor files a CGT return on iTax and pays the tax before the property can be transferred at the land registry.
Exemptions
- Principal private residence (subject to conditions)
- Transfers in a qualifying corporate reorganisation
- Inter-spousal transfers
Our tax advisors calculate your CGT liability before any transfer and advise on legitimate structuring options to minimise your tax exposure.
