Capital Gains Tax Calculator Kenya 2026

What capital gains tax is

Capital gains tax (CGT) is charged on the profit you make when you sell certain assets, mainly land, buildings and shares in private companies. It is a tax on the gain, which is the sale price less what you paid and the allowable costs, not on the whole sale price. The current rate is 15% of the net gain, and it is paid by the seller.

CGT was reintroduced in 2015 at a much lower rate and was raised by the Finance Act 2023. The calculator uses the rate in force on the date you choose, so you can test a sale at an earlier date.

How the gain is worked out

The calculator follows the usual formula:

1. Transfer value (the selling price).
2. Less the cost of the property: the purchase price, the costs of buying (legal fees, stamp duty, survey), and the cost of any lasting improvements you can prove.
3. Less the costs of selling: agent and legal fees.
4. The result is the net gain. If it is negative, there is a loss and no tax.
5. Tax is the rate multiplied by the net gain.

A worked example

Suppose land bought for KES 4,000,000 is sold for KES 10,000,000. Buying costs were KES 100,000, improvements KES 500,000 and selling costs KES 200,000. The net gain is KES 5,200,000 and the tax is KES 780,000.00.

Records you will need

KRA can ask for evidence of the cost. Keep the sale agreement, the title deed, the stamp duty receipt, valuation reports, receipts for improvements and agent invoices. If the property was inherited or received as a gift, the cost may be its value on the date you received it, so keep the valuation.

When and how CGT is paid

CGT is declared and paid when the property is transferred. In practice the buyer's lawyer will usually need a CGT payment receipt before the transfer can be registered. You file the CGT return on iTax, using your own login, and pay before the transfer is registered. Late payment attracts penalties and interest.

Exemptions and special cases

Some transfers are exempt, and others are treated specially. Examples include certain transfers on the death of the owner, transfers between spouses in a divorce, some agricultural land transfers and transfers of a private residence under the rules in the Income Tax Act. Property acquired before 1985 is treated using its value on that date. The calculator does not check these conditions, so confirm with KRA before assuming an exemption.

CGT and other taxes

The same sale can involve other taxes. Stamp duty is paid by the buyer, at a different rate in urban and rural areas. VAT may apply on certain commercial property transfers. If you sell property as part of a business of dealing in property, the profit may be taxed as business income rather than as a capital gain. A landlord who sells an investment property should also review any capital allowances claimed, because they can affect the gain.

About the estimate

The figures come from the rates held for this site. The calculator is an estimate for information only and is not tax or legal advice. Ask a tax adviser or conveyancer before you sign a sale agreement.

Timing and cash flow

Capital gains tax is due at transfer, so plan the cash before you sign. Ask your lawyer which date counts as the transfer date, how the valuation will be agreed if the price looks low compared with the market, and how long the CGT receipt takes. If part of the price is paid in instalments, the tax is still generally due on the full gain at transfer, so you may need to fund it from the first payment. Compare the net proceeds with your other options, such as holding the property and letting it, where rental income tax would apply instead.

Guides, tools and templates for this topic

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