Key Highlights:
- The Kenya Revenue Authority (KRA) will no longer oversee the collection of stamp duty for land transactions.
- Starting November 27, 2023, the Ministry of Lands will assume the responsibility for stamp duty collection.
- All payments for stamp duty on land transactions will now be directed to the State Department of Lands and Physical Planning via the e-Citizen platform.
Background:
The government’s strategic move to centralize revenue collection has led to the KRA relinquishing its role in collecting aviation fees and, most recently, stamp duty on land transactions. This shift is geared towards optimizing the payment process and increasing overall efficiency.
Impact:
- The transfer of stamp duty collection to the Ministry of Lands aims to simplify the payment process for the public. Landowners and buyers will now directly make stamp duty payments to the State Department of Lands and Physical Planning through the e-Citizen platform.
- There are concerns about how this change may affect the coordination between stamp duty and capital gains tax for sellers. The specific mechanisms under the new system remain unclear.
- Existing exemptions from stamp duty, including those for first-time homebuyers and transfers to charitable organizations, remain unchanged.
Stay updated on the latest developments regarding stamp duty collection and other property-related matters. CM PROPERTY DIGEST is committed to providing timely updates as they unfold.
