Buyers who only budget for the asking price get an unpleasant surprise at closing. Transaction costs in Kenya typically add several percent to the purchase, and they are due at specific moments — so plan for them from the start.
Stamp duty — the biggest line item
Stamp duty is charged on the property value as assessed by a government valuer: 4% in urban areas and 2% in rural areas. It is paid to the Kenya Revenue Authority before the transfer can be registered, and it is calculated on the higher of the purchase price or the valuer’s figure.
Legal and conveyancing fees
Your advocate’s fee follows the Law Society of Kenya remuneration scale — broadly around 1–2% of value on typical transactions, tapering on larger deals. This covers due diligence, the sale agreement, the transfer and lodging documents.
The smaller — but real — costs
- Valuation fee — required for mortgages and for stamp-duty assessment.
- Official land search and registration fees.
- Registration and disbursements for the transfer and any charge.
- Bank/arrangement fees if you are financing.
- Agency commission where applicable (often paid by the seller, but confirm).
A safe rule of thumb: set aside 5–8% of the purchase price for transaction costs on a typical urban purchase. If you are financing, remember the deposit sits on top of all of this.
