Good News for Kenyans as Ruto Announces Major Relief for Those Buying Land Worth Ksh1 Million

President William Ruto has announced a proposed tax relief measure that could make land ownership more affordable for Kenyans, especially those planning to buy plots worth Ksh1 million or less.

The proposal seeks to exempt qualifying land transactions from stamp duty, a statutory charge that buyers must account for when transferring property ownership.

If approved, the measure could reduce the upfront costs faced by first-time buyers and households saving to acquire land for residential development.

Ruto made the announcement during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Tuesday, October 20.

He said the National Treasury had prepared proposals to reduce the financial burden on property buyers while introducing progressive rates for higher-value transactions.

“The National Treasury has developed proposals to exempt land transactions valued at Ksh1 million or less from stamp duty and introduce progressive rates for higher-value transactions,” the President stated.

The proposed exemption could offer relief to buyers whose budgets are already stretched by the purchase price, legal expenses and other costs associated with acquiring property.

For Kenyans targeting smaller plots, the removal of stamp duty could lower the amount needed to complete a transaction, although the extent of the savings will depend on the applicable rules.

The plan also points to a possible change in how stamp duty is applied to more expensive land transactions.

Under the proposed system, higher-value transactions would be subject to progressive rates, although the government has yet to provide the specific rates or explain how the new structure would work.

However, the announcement does not mean the exemption is already in force. The proposals must first go through the required legislative process before any approved changes can be implemented.

Ruto said he had instructed the National Treasury to move quickly and present the proposals to lawmakers, setting a short timeline for the next stage of consideration.

“I have directed the National Treasury to place all these proposals before Parliament next week,” he announced.

TheClicksMaster feedback-opera-news-app@opera.com