Capital Gains Tax in Kenya is 15% on the net gain from the transfer of property, shares, and other assets. Calculate your CGT liability here.
How Is Capital Gains Tax Calculated in Kenya?
Capital Gains Tax (CGT) in Kenya is charged at 15% of the net gain on the transfer of property — the transfer value less incidental transfer costs, minus the adjusted cost of the asset. If the result is negative, no tax is due since it represents a capital loss rather than a gain.
What Is the Capital Gains Tax Rate in Kenya?
The CGT rate in Kenya is 15% of the net gain, up from 5% before the Finance Act 2023 raised it effective 1 January 2023. The tax is final — it is not added to other income and taxed again.
What Counts as the Adjusted Cost of an Asset?
Adjusted cost equals the original acquisition price plus incidental costs of acquisition (legal fees, valuation, agency fees) and any capital improvement or enhancement expenditure incurred on the asset since purchase.
Which Transactions Are Exempt From Capital Gains Tax in Kenya?
KRA exempts the sale of an individual's primary residence occupied for at least 3 continuous years, land transfers valued under KES 3,000,000, agricultural land under 50 acres outside a municipality or urban area, listed securities traded on the Nairobi Securities Exchange, and gifts or inheritances transferred to a spouse or immediate family member.
Who Pays Capital Gains Tax, the Buyer or the Seller?
The seller (transferor) pays Capital Gains Tax in Kenya, since the tax is charged on the gain the seller realizes from disposing of the property.
When Is Capital Gains Tax Paid?
CGT is due on or before the transfer instrument is presented for registration — payment is made through iTax by selecting Income Tax as the tax head and Capital Gains Tax as the sub-head before the Ministry of Lands or relevant registrar will register the transfer.
How Do I Use the Capital Gains Tax Calculator?
Select the transaction type, then enter the transfer value, any incidental costs of the transfer, the original acquisition cost, incidental acquisition costs, and improvement expenditure. The calculator computes the net gain and applies the 15% rate, unless the transaction type you selected is exempt.
Verify with KRA: This calculator applies the 15% rate set by the Finance Act 2023 and the standard exemption categories. Specific transactions can involve additional conditions (e.g. partial exemptions, corporate restructuring relief, or estate administration timelines), so confirm your exact liability via KRA's Capital Gains Tax guidance or a licensed tax advisor before filing.
What is the Capital Gains Tax rate in Kenya?
Capital Gains Tax in Kenya is 15% of the net gain on the transfer of property, up from 5% before the Finance Act 2023 raised it effective 1 January 2023.
How is the net gain calculated for CGT purposes?
Net gain equals the transfer value less incidental costs of transfer (such as legal and agency fees), minus the adjusted cost — the original acquisition price plus incidental acquisition costs and any capital improvement expenditure.
Is the sale of my primary residence subject to Capital Gains Tax?
No. KRA exempts the sale of an individual's primary residence from CGT, provided it was occupied continuously for at least 3 years before the transfer.
Do I pay Capital Gains Tax on agricultural land?
Agricultural land under 50 acres located outside a municipality, township, or urban area is exempt from CGT. Larger parcels or land within urban areas are taxable at the standard 15% rate.