Understanding Stamp Duty
Stamp duty is a government tax charged when buying or transferring property. It is usually calculated as a percentage of the property’s value and must be paid before the ownership transfer process is completed. In Kenya, stamp duty is an important cost that buyers should include when budgeting for a home purchase.
Key points to understand:
- Purpose: It legally records and validates property ownership transfers.
- Cost planning: Buyers should budget for stamp duty alongside legal fees, valuation fees, and other transaction costs.
- Payment timing: It is typically paid during the property transfer process before registration.
- Calculation: The amount depends on the property’s location and assessed value.
Understanding stamp duty helps first-time buyers prepare financially and avoid unexpected costs when purchasing property.
