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Capital Gains Tax in Kenya: How to Calculate What You Owe Without the Panic

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  Picture this: You bought a 50x100 plot of land in Syokimau or Kitengela five years ago for KES 2.5 Million. Today, an eager buyer offers you KES 7 Million. You shake hands, celebrate with family, and start imagining your new lifestyle. Then comes the call from your advocate mentioning the "KRA Capital Gains Tax clearance certificate" before the property transfer can go through. If your heart just skipped a beat, take a deep breath. Calculating Capital Gains Tax (CGT) in Kenya does not require a degree in financial engineering. Once you understand the basic formula used by the Kenya Revenue Authority (KRA), you will realize it is straightforward, predictable, and easy to plan for. What is Capital Gains Tax in Kenya? Capital Gains Tax (CGT) is a tax levied on the profit you realize when you sell or transfer a property or private asset in Kenya. The key keyword here is profit . KRA does not tax the total amount of money you collect from the buyer. They only tax the net gain...

What a Kenyan Land Title Search Misses (And How to Fix It)

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You saved up for years, identified a plot in Kiambu or Kitengela, paid KS 500 for an official land search on Ardhisasa or at the local registry, and waited for the results. When the report arrived, it was a beauty: Owner: Genuine Seller. Encumbrances: None. Relieved, you signed the agreement, transferred a KS 2 million deposit, and popped a bottle of soda to celebrate. Two months later, as your construction team starts clearing the bushes, a surveyor shows up accompanied by police officers. They inform you that your plot sits squarely inside a Kenya National Highways Authority (KeNHA) road reserve. Or worse, a local family arrives with court papers claiming the plot is ancestral land sold illegally by a rogue uncle without family consent. You pull out your green search report and wave it at them. They laugh. How does this happen if the government paper said everything was clean? Here is the hard truth about buying property in Kenya: An official search report only tells you what is writ...

Heading Out for a Standalone Site Visit This Weekend Without an Agent? Don't Leave Without Checking These 5 Red Flags

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​Planning an independent land site visit? Discover 5 critical red flags from soil drainage to beacon checks that will save you from costly real estate mistakes. ​​Visiting a piece of land on your own can feel empowering, but going without professional guidance leaves you vulnerable to expensive surprises. Before committing your hard-earned savings, run through these five non-negotiable checks on-site: ​ 1. Soil & Topography (The Hidden Foundation Trap) Examine the ground texture closely. Clay or black cotton soil retains water, leading to pooling and structural instability. Fixing poor soil conditions through specialized foundations can increase your structural build budget significantly. ​ 2. Beacon & Boundary Verification Never assume the fenced area reflects the legal boundary. Locate every physical concrete beacon and compare its positioning against the official mutation map layout before paying for a full boundary survey. ​ 3. Infrastructure & Utilit...

The Westlands Sunset Premium: Is a Balcony View Worth the Extra Rent?

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​​There is an unspoken rule in Nairobi’s fast-growing vertical real estate market: Height and light cost money. ​As Westlands transforms into a dense high-rise hub, developers are no longer just selling square footage , they are selling orientations. Specifically, western-facing apartments high enough to clear neighboring rooftop water tanks and catch the sun dipping behind the iconic Ngong Hills silhouette. ​The Economics of the View ​In standard 12 to 20-story residential developments across Westlands, rent structures follow a clear elevation gradient: ​ Lower Floors (Floors 1 to 4): Limited natural light, views often obstructed by adjacent construction or parking silos. A standard 2-bedroom here rents for roughly KSh 95,000 to KSh 110,000 . ​ Mid-to-High Floors (West-Facing, Floors 10+): Unobstructed light, minimal street noise, and direct sunset line-of-sight. The exact same 2-bedroom layout jumps to KSh 125,000 to KSh 150,000 . ​This creates a "Sunset Premium...

Understanding Part Development Plans (PDPs): The Hidden Key to Land Use and Value

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When purchasing real estate or planning a construction project, most buyers focus heavily on title deeds, land searches, and purchase prices. However, there is a foundational spatial document that dictates what you can legally do with that parcel of land before formal title documents are generated: The Part Development Plan (PDP). What is a Part Development Plan (PDP)? A Part Development Plan (PDP) is a detailed spatial blueprint drafted by registered physical planners and approved by the relevant planning authorities (such as County Government Directors of Physical Planning or the National Directorate). It illustrates the proposed land use, boundary alignments, road reserves, and spatial layout for a targeted parcel or block of land before formal alienation, subdivision, or titling takes place. Whether land is being converted from agricultural to commercial use, or unalienated public land is being regularized for private development, the PDP serves as the primary physical blueprint. ...

Kenya Property Report 2026

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​If you've been looking at real estate listings lately, you might have noticed a strange divide: apartments seem easier to negotiate, while standalone houses with private yards feel like they're climbing out of reach. ​You’re not imagining things. The official numbers from the Kenya National Bureau of Statistics (KNBS) Q1 2026 Residential Property Price Index show that Kenya's property market has officially split in two. The Raw Numbers (Minus the Jargon) ​Overall residential property prices across the country grew by 4.8% year-on-year in Q1 2026. On paper, that looks like modest, steady growth. But when you look under the hood, the two main property types are moving in completely opposite directions: ​ Standalone Houses (Maisonettes, Bungalows & Villas): Jumped by a massive +8.5% annually. ​ Apartments (Flats & Duplexes): Slipped by -3.0% nationwide, with urban centers like Kilimani, Kileleshwa, and Parklands taking the biggest hit ​Why is thi...

​What Happens When You Die Without a Will in Kenya? (Intestate Succession Explained)

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​Imagine building a life, buying plots in places like Kitengela or Ruiru, and accumulating assets over decades, only for your family to be thrown into chaos because you didn't leave a simple written instruction. ​In Kenya, passing away without a valid written will is legally known as dying intestate . When this happens, family members cannot simply decide amongst themselves who gets what. Instead, the Law of Succession Act (Cap 160) takes full control of your estate. ​ Legal Warning: Attempting to sell, divide, or take possession of a deceased person's property before the court officially grants permission is a criminal offense under Section 45 of the Act, known as intermeddling . ​How Property Distribution Works Under Kenyan Law ​When there is no will, property distribution follows a strict statutory formula based on family structure: ​ Surviving Spouse & Children: The surviving spouse receives personal and household items, plus a life interest i...