Gazetted Towns/Municipalities to Be Charged 4% Stamp Duty Tax in Land Transfers

On 4th April 2024, the Council of Governors issued a letter listing all gazetted urban areas and municipalities within various counties in Kenya. This was followed by a directive from the Office of the Principal Secretary for Lands, Public Works, Housing and Urban Development on 5th April 2024, addressed to all Land Registrars, to charge stamp duty on the transfer of land within the gazetted towns and municipalities at a rate of 4% in line with the Stamp Duty Act. This directive came into force immediately. The increase will result in stamp duty for buyers in the affected areas being twice the former rate of 2%.The gazetted cities and municipalities that fall within the ambit of the 4% stamp duty rate are listed below. Any officer found not to have complied with this directive shall be held liable and be surcharged to the extent of the lost revenue.We advise all clients to take note of this change and to factor it into their plans for land transactions in the affected areas. 

List of the affected areas.