Selling for KSh 10,000,000 after buying for KSh 6,000,000 leaves a KSh 3,700,000 gain and CGT of KSh 555,000.
How Capital Gains Tax is calculated
CGT is charged at 15% of your net gain: the sale price, minus what you originally paid for the property, minus any allowable costs like improvements, legal fees, stamp duty and agent commissions on both the purchase and the sale. If the sale results in a loss, no CGT is due.
This is a final tax paid by the seller through iTax, and it must be settled before the property transfer can be registered. Your primary residence is exempt if you've owned and lived in it for at least three years, and transfers by inheritance or to immediate family are also generally exempt.
Rates used in this calculator
Capital Gains Tax
Rate
15% of the net gain
Frequently asked questions
What is Kenya's Capital Gains Tax rate?
Capital Gains Tax in Kenya is 15% of the net gain made on the sale of property, land or unquoted shares, effective since 1 January 2023, when the rate rose from 5%.
Who pays Capital Gains Tax, the buyer or the seller?
The seller (transferor) pays CGT. It is declared and paid through iTax before the property transfer can be registered.
Is my primary residence exempt from CGT?
Yes, your main home is exempt if you owned and lived in it for at least three continuous years before selling. Transfers by inheritance or to immediate family are also generally exempt.
What counts as an allowable cost when calculating the gain?
Allowable costs include money spent on improving the property, plus legal fees, stamp duty and agent commissions paid on both the original purchase and the current sale. These reduce the taxable gain.