- President William Ruto announced the stamp duty exemption proposal during the 63rd Mashujaa Day celebrations in Eldoret
- The National Treasury has developed progressive rate proposals covering higher-value land transactions alongside the exemption
- Ruto directed the National Treasury to table all proposals before Parliament within one week
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
President William Ruto has announced plans to exempt land transactions valued at KSh 1 million or below from stamp duty, a proposal his administration says will lower the cost of property acquisition for low-income Kenyans.
Source: Twitter
Ruto made the announcement on Tuesday, October 20, 2026, during the 63rd Mashujaa Day celebrations held at Kipchoge Keino Stadium in Eldoret, Uasin Gishu county.
"The National Treasury has developed proposals to exempt land transactions valued at KSh 1 million or less from stamp duty and introduce progressive rates for higher-value transactions," the president said.
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What the proposal means for buyers
Under the current regime, stamp duty on property transactions within municipalities stands at 4% of the property's value.
A buyer purchasing land worth KSh 1 million in a municipal area therefore pays KSh 40,000 in stamp duty. Outside municipalities, the rate drops to 2%, meaning buyers in those areas currently pay KSh 20,000 on a KSh 1 million transaction.
If Parliament approves the proposal, buyers of land valued at KSh 1 million or less could save between KSh 20,000 and KSh 40,000, depending on where the property is located.
Ruto said the changes are intended to ease financial pressure on ordinary citizens, particularly those at the lower end of the income scale who struggle with the additional costs that come with formalising land ownership.
When will Parliament receive proposals?
The president was clear that the exemption is not yet law.
He directed the National Treasury to submit the full set of proposals to Parliament within a week for formal consideration.
The announcement adds to a series of tax-related measures the Ruto administration has floated in recent months.
What else did Ruto propose?
The president also proposed to raise the Pay As You Earn tax-free threshold for salaried workers earning KSh 32,333 and below.
The proposals seek to ease the tax burden on low-income earners.
Ruto also proposed scrapping the 25% tax on imported mobile phones.
Source: TUKO.co.ke