Last reviewed – 26 February 2025
CGT is a final tax levied at 15% on gains from the sale or transfer of property by individuals or companies. The definition of ‘property’ is broad and includes land, buildings, and securities in Kenyan resident private companies (except for publicly listed securities, which are exempt).
Key Highlights
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Taxable Events
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CGT applies to property sales, transfers, or exchanges where a gain is realized, including transactions involving securities in private companies.
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Payment Timing
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Tax is due at the earlier of: – When the seller receives the full purchase price. – Upon registration of the transfer. |
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Exemptions
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Certain transactions are exempt, including: – Transfers due to law changes or government directives. – Internal group restructurings (no third-party involvement). – Transfers made in the public interest (subject to Cabinet Secretary approval). |
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Taxation of Property-Linked Shares
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If, within 365 days before sale, more than 20% of a company’s value is derived from immovable property in Kenya, gains from the sale of its shares are subject to CGT. |
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Nairobi International Financial Centre (NIFC) Transactions
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The Tax Laws (Amendment) Act, 2024 reduced CGT to 5% for transactions certified by the Nairobi International Financial Centre Authority (NIFCA).
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Investment Requirements for NIFC CGT Rate
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– Investor must invest at least KES 3 billion in a Kenyan entity within two years. – The investment must be held for at least five years before transfer. |
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