Prices Of land Set to go up In cities And municipalities As Stamp duty rises 

Prices Of land Set to go up In cities And municipalities As Stamp duty rises

What you need to know:

Nakuru and Kisumu cities and 81 municipalities have been slapped with a four per cent stamp duty by the government. This means that for any transfer of land and property in these cities and municipalities, the purchaser will be required to pay four per cent of the total value to the government, double the current rate. The government charges a stamp duty of two per cent of the total value of the property for land in rural areas and four for urban centres. In a letter to registrars, Lands Principal Secretary Nixon Korir said the directive takes effect immediately.

“I wish to draw your attention to the said letter with specific reference to the schedule providing the list of all gazetted urban areas and municipalities. This directive comes into effect immediately. Any officer found not to have complied with this directive shall be held liable and be surcharged to the extent of the lost revenue,” Mr Korir said in the letter.

The municipalities include Naivasha, Molo, Gilgil, Ruiru, Kikuyu, Karuri, Kiambu, Thika, Limuru, Gatundu, Juja, Githurai, Lari, Kabete, Githunguri, Eldoret, Kisumu, Ahero-Awasi, Maseno, Kombewa-Bodi, Muhoroni, Katito-Pap Onditi, Ngong, Kitengela, Kajiado, Garissa, Masalani, Dadaab, Bura, Kitale, Mavoko, Machakos, Tala/Kangudo, Malindi, Kilifi, Mtwapa, Mariakani and Watamu.

Others are Mandera, El-Wak, Kisii, Ogembo, Kakamega, Mumias, Wajir, Lodwar, Kakuma, Meru, Maua, Timau, Nyeri, Isiolo, Kwale, Diani, Lungalunga, Kinango, Rumuruti, Nanyuki, Busia, Malaba, Migori, Rongo, Awendo, Bungoma, Kimilili, Narok, Kilgoris, Embu, Kathwana, Chuka, Kericho, Litein, Mwatate, Voi, Taveta, Homa Bay, Oyugis, Mbita, Kendu Bay, Ndhiwa, Murang’a and Kenol.

In November last year, the Kenya Revenue Authority (KRA) shifted the collection of stamp duty to the Ministry of Lands in an effort to decentralise tax collection. Anyone purchasing property should pay through the Ardhi Sasa platform. In the fiscal year ending June 2024, the government expects to collect Sh9.53 billion from stamp duty alone.

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