CGT on a property sale including buying and selling transaction costs.
CGT due
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Net taxable gain
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Net proceeds
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Your breakdown
Updates live as you type| Item | Amount |
|---|
Worked example
Take a property bought for KES 8,000,000 and sold for KES 12,000,000. Along the way you spent KES 800,000 on improvements, KES 200,000 on legal fees, and KES 360,000 on agent commission. These allowable costs come off the sale price to find the chargeable gain. The gain is 12,000,000 less the 8,000,000 cost, less 800,000 of improvements, less the 200,000 legal and 360,000 agent costs, which leaves a net gain of KES 2,640,000.
| Item | Amount (KES) |
|---|---|
| Sale price | 12,000,000 |
| Less purchase cost | 8,000,000 |
| Less improvements | 800,000 |
| Less legal and agent fees | 560,000 |
| Net chargeable gain | 2,640,000 |
| CGT at 15% | 396,000 |
| Net proceeds to seller | 11,044,000 |
Capital gains tax at 15% of the KES 2,640,000 gain is KES 396,000. After paying the tax and the selling costs, the seller keeps KES 11,044,000 of the sale price. The chart below splits the net gain into the CGT and the part of the gain you keep.
How it is calculated
Kenyan capital gains tax on property is a flat 15% of the net gain, charged on the transfer of land or buildings. The net gain is the transfer value, normally the sale price, minus the adjusted cost. The adjusted cost is what you paid for the property plus the cost of any improvements that added value, plus incidental costs of buying and selling such as legal fees, valuation, and agent commission. If the result is zero or negative there is no chargeable gain and no tax is due. The rate rose from 5% to 15% in 2023, so older guides may quote the lower figure. CGT is payable to the KRA on or before transfer of title, and the buyer cannot register the transfer until it is settled, which is why it is deducted from the seller's proceeds. Certain transfers are exempt or deferred, including a transfer of a private residence occupied for at least three years and some transfers between spouses or because of inheritance, so confirm your case with a conveyancer before relying on the figure.