Understanding Capital Gains Tax in Kenya

When selling property in Kenya, sellers may be subject to Capital Gains Tax (CGT) on the profit realised from the sale.

What is Capital Gains Tax? Capital Gains Tax is levied on the gain (profit) made when a chargeable asset — including immovable property — is sold or otherwise disposed of.

Key considerations: - CGT applies to the gain, not the full sale price - The applicable rate and exemptions may vary based on the nature of the transaction and the seller - Certain transactions may qualify for exemptions or reliefs under Kenyan tax law - CGT returns and payment obligations have specific timelines that must be observed

Important note: Tax legislation and rates are subject to change. The information presented here is for general awareness only and should not be relied upon as professional tax advice. We strongly recommend consulting a qualified tax advisor or legal professional before completing any property transaction.