How capital gains tax works in Kenya
Kenya taxes net gains on Kenyan land and buildings at a final flat 15% since 2023, tripled from 5%. No bands, no progression, no return top-up.
Indirect transfers join the net: selling foreign entities deriving a fifth of value from Kenyan property, with a fifth-plus Kenyan-company stake, triggers the same 15%.
Private residences escape with conditions, marketable securities are spared, and certified mega-projects held five-plus years can qualify for 5%. Losses stay inside the gains lane.
Tax rates at a glance
- Standard rate
- 15%Final
- Property scope
- Land + buildings
- Indirect test
- 20% / 20%
- Mega-project lane
- 5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersTradersHigh earnersFamily offices
Watch out for
- The 15% applies to net gain, not price. Documented costs, improvements and transfer expenses cut the base before the flat rate.
- Offshore holding sales can trigger Kenyan tax. The dual 20% tests catch foreign exits of Kenyan property wealth.
- Crypto is not marketable-securities shelter. Token disposals face normal gains treatment with shilling records required.
- Home exemption needs its conditions. Private-residence relief is not automatic for every owner-occupied sale.
Frequently asked questions
Does Kenya tax capital gains?
Yes, at a final flat 15% on land, buildings and indirect property transfers, with homes and marketable securities spared.
Are crypto gains taxed in Kenya?
Yes, under gains rules with shilling records. The old digital-asset tax is repealed in favour of normal treatment plus excise on provider fees.
Is my home sale taxed in Kenya?
Private residences escape with conditions. Investment and commercial property pays the full 15%.