Understanding Stamp Duty Payment in Kenya

What is Stamp Duty Payment?

Stamp Duty is a form of agency revenue collected by the Kenya Revenue Authority (KRA) on behalf of the government. It is a tax charged on legal instruments such as:

• Land and property transactions
• Share transfers
• Marriage licenses
• Receipts and cheques
• Military commissions

The rate of Stamp Duty varies depending on the nature of the legal instrument.

When Should Stamp Duty Be Paid?

Timing is crucial when it comes to Stamp Duty payment:

• For locally prepared documents, duty must be paid within 30 days of execution.
• For documents executed abroad, payment must be made within 30 days of receipt in Kenya.

📌 Important: Failure to pay Stamp Duty on time:

• Makes the agreement null and void
• Renders the document inadmissible in court
• Attracts a penalty of 5% of the principal duty for every quarter of delay

Recent Update: Capital Gains Tax and Stamp Duty

Previously, Stamp Duty could only be processed after Capital Gains Tax (CGT) was paid. However, this requirement has now been removed.

Now, you can:

• Process Stamp Duty payment independently
• No longer need a CGT acknowledgement number to proceed

This change has significantly improved the ease of doing business by reducing delays and increasing efficiency on the iTax system.

How to Pay Stamp Duty on iTax

Paying Stamp Duty is now one of the simplest processes on iTax. Follow these steps:

1. Log in to your iTax account: https://itax.kra.go.ke
2. Navigate to “Payment Registration” under the Payments menu
3. Select:
   • Tax Head: Agency Revenue
   • Subhead: Stamp Duty
   • Payment Type: Self-Assessment
4. Click Payment Registration
5. Enter the Bill Reference Number (Transaction ID)
6. Choose the type of instrument from the dropdown menu
7. Enter:
   • Transferor (Seller) and Transferee (Buyer) details
   • Declared value, Date of Instrument, and Tax rate
8. Select your mode of payment
9. Generate the payment slip
10. Make payment via:
    • Bank
    • M-Pesa Paybill: 572572 using the Payment Registration Number (PRN) as the account number

Final Thoughts

Stamp Duty payment is essential for the legal validity of various transactions. Thanks to iTax integration, the process is now more efficient and accessible for both individuals and businesses.

Stay compliant, avoid penalties, and ensure your documents are legally enforceable by paying Stamp Duty on time.