Real estate taxes in Kenya are levied and paid to state and county governments. The funds generated from real estate taxes are used to help pay for local and state services.<\/p>\n\n\n\n
Below are some of the taxes charged, both by the national and county government relating to land;<\/p>\n\n\n\n
This is a tax imposed by county governments within a municipality or township. Rates are payable in respect of services such as water, sanitation and sewerage services provided by the county. The imposition of rates is provided under the Rating Act while the Valuation for Rating Act empowers the county governments to value land to determine the rates.<\/p>\n\n\n\n
Land rent is levy imposed on leasehold parcels of land where the annual rent has been reserved at the time the grant is being issued and its payable to the Ministry of Lands and Physical Planning<\/p>\n\n\n\n
Income Tax Act (ITA) provides the framework for imposition of taxes on income from among others land. The main income taxes payable in respect of Land are Capital Gains<\/a> Tax (CGT) and tax on rental income.<\/p>\n\n\n\n CGT is a tax chargeable on the gain on transfer of land, building and shares. This tax was re-introduced in 2015 having been suspended in 1985. CGT is charged at the rate of 15% of the gain.<\/p>\n\n\n\n The tax on rental income is a tax arising from the gains and profits for occupation of property. The ITA provides for various ways of taxing rental income;<\/p>\n\n\n\n