- Stamp Duty (KRA Tax):
- This is a government tax on property transfers.
- Expect to pay 4% of the property value for properties within municipal areas and 2% for those outside.
- This fee is paid to the Kenya Revenue Authority (KRA).
- Legal Fees (Advocate's Fees):
- Your lawyer plays a crucial role in ensuring a smooth and legal transfer.
- Legal fees typically range from 1% to 2% of the property's value, but always confirm with your advocate.
- While the Advocates Remuneration Act provides guidance, clear communication about fees is vital.
- Property Valuation:
- A professional surveyor will assess the property's market value.
- The cost of this service varies based on the property's size and location.
- Title Search and Registration:
- These fees cover the necessary checks to confirm clear ownership and register your title.
- These payments are made at the Lands Registry.
- Property Transfer Fees:
- These are the fees charged by the relevant land offices to process the transfer of ownership into your name.
- Mortgage-Related Costs (If Applicable):
- If you're financing your purchase, your lender will have their own set of fees, which may include:
- Loan processing charges
- Property valuation fees
- Other bank-specific charges.
- If you're financing your purchase, your lender will have their own set of fees, which may include:
- Survey Fees:
- This covers the cost of surveying the property boundaries.
Understanding Closing Costs When Buying Property in Kenya
March 20, 2025
Buying property is a major investment, and it's essential to factor in all the associated costs. Beyond the purchase price, you'll encounter "closing costs," which are the expenses required to finalize the transaction. Here's a clear breakdown to help you budget effectively:
