Buying Land in Kenya? Ruto Announces Plan to Scrap Stamp Duty on Deals Up to Sh1 Million

President William Ruto has proposed scrapping stamp duty on land transactions valued at Sh1 million or less, a move that could lower the cost of acquiring property for Kenyans hoping to become landowners.

The proposal was announced during the Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, 2026. Ruto said the National Treasury had prepared measures intended to reduce the financial burden on households and make economic opportunities more accessible.

Under the proposed changes, qualifying land transactions would be exempt from stamp duty, while higher-value transactions would attract progressive rates. This would introduce a graduated system in which the amount payable would depend on the value of the property being transferred.

“The National Treasury has prepared proposals to exempt land transactions valued at one million shillings or less from stamp duty and introduce progressive rates for higher-value transactions,” Ruto said.

Currently, stamp duty on property transfers is generally charged at 4% of the property’s value in cities, municipalities and gazetted towns, while rural and agricultural land typically attracts a rate of 2%.

For example, under the current rates, a property valued at Sh1 million could attract Sh40,000 in stamp duty in an urban area or Sh20,000 in a qualifying rural area. These figures illustrate the existing rates and do not include other costs associated with purchasing and transferring land.

The amount used to calculate stamp duty is based on the applicable property valuation, with the government valuer’s assessment potentially determining the taxable value where it exceeds the agreed purchase price.

If implemented as proposed, the exemption could help buyers of lower-value properties retain more money during the land acquisition process. This may be particularly significant for first-time buyers and households working with limited budgets to secure property.

Ruto said the changes were intended to reduce the cost of acquiring and transferring land, especially for citizens at the bottom of the economic pyramid, while strengthening Kenyans’ ability to own property.

However, the proposal is not yet an implemented tax exemption. The relevant policy and legal processes must be completed before the changes can take effect. Buyers should therefore continue to confirm the applicable charges when planning property transactions.

The land stamp duty proposal was one of four measures the President outlined during this year’s Mashujaa Day celebrations, all presented as part of efforts to ease household financial pressure and expand access to economic opportunities.

Another proposal seeks to exempt workers earning Sh32,333 or less per month from Pay As You Earn (PAYE) income tax. If adopted, the measure could increase take-home pay for eligible employees by reducing the amount deducted from their monthly earnings.

The President also proposed removing the 25% import duty on mobile phones, a move aimed at reducing the cost of devices and improving access to digital technology. The actual effect on retail prices would depend on the final tax arrangements and how other costs are treated.

The fourth measure involves expanding internship opportunities for graduates, providing more young people with opportunities to gain workplace experience and improve their prospects of securing employment.

The four proposals address different areas of household spending and economic participation, including property ownership, employment income, access to technology and opportunities for young graduates.

The Mashujaa Day celebrations were hosted by Uasin Gishu, Nandi and Elgeyo-Marakwet counties. The national event recognised Kenyans whose courage and sacrifice contributed to the country’s struggle for independence and called on citizens to build on their legacy.

For people planning to buy land, the proposed exemption could offer potential savings if it becomes law. However, until the government completes the necessary legal and policy steps, the existing stamp duty rules remain the basis for calculating the tax payable on property transfers.