A transfer of land as a gift in Kenya goes through the same registry process as a sale. The owner signs a transfer to the child or sibling, the transfer is stamped, and it is registered at the land registry. No money changes hands, but stamp duty is still payable. The Stamp Duty Act treats a gift during the giver's lifetime as if it were a sale, and charges duty on the value of the land instead of a price.
The main exception is between husband and wife, where the duty is nil. A gift from a parent to a child, or from one sibling to another, does not have a general stamp duty exemption.
That catches families out, so go through the numbers and the steps before anyone signs.
Why parents give land during their lifetime
Many parents living abroad want a child to have a plot now, not after they die. Sometimes it is because the child is already building there. Sometimes a sibling wants to formalise a share the family agreed years ago. And sometimes it is to avoid the delay of succession, which can take a long time once the owner has died.
A lifetime gift does that. Once the transfer is registered, the land belongs to the recipient. It also cannot easily be undone, which is the part to think through before signing.
Stamp duty on a gift of land
Section 52 of the Stamp Duty Act says any conveyance or transfer operating as a voluntary disposition during the giver's lifetime is charged as if it were a sale, using the value of the property in place of the price.
The rate then follows the Schedule to the Act:
- For immovable property in a municipality, the duty works out at 4% of the value.
- For immovable property outside a municipality, it works out at 2%.
- For a transfer of real property between husband and wife, the duty is nil.
Because there is no price, the value is assessed. In practice the land is valued for stamp duty purposes before the duty is confirmed. Your advocate will handle the valuation request and the payment, and should give you the assessed figure in writing before you commit.
The KRA's stamp duty FAQs list some exemptions. Those that can apply within families include:
- property transferred between spouses
- family property passed to members after the death of the family member in whose name it was registered (that is succession, not a lifetime gift)
- family property transferred to a company wholly owned by the same family, under Legal Notice No. 92 of 2007
Section 52 also exempts gifts to certain charitable bodies, including a registered family trust set up for charitable purposes only. Some families use trusts for other reasons, but that is a separate structure with its own rules and costs. Get specific advice before going that route.
Capital gains tax
A gift is also a transfer for capital gains tax purposes. KRA's capital gains tax page lists exemptions that include "transfer of assets between spouses" and "transfer of assets to immediate family", as well as transfer to a company where spouses, or a spouse and immediate family, hold 100% of the shares. Where no exemption applies, CGT is 15% of the net gain.
The KRA page does not define "immediate family". A transfer from a parent to a child is the usual case people mean. Whether a transfer between siblings qualifies is a question to put to your advocate or tax adviser before you rely on it.
Land Control Board consent for agricultural land
If the land is agricultural and in a land control area, the Land Control Act requires the consent of the local Land Control Board for a "sale, transfer, lease, mortgage, exchange, partition or other disposal" of the land. A gift is a transfer, so it needs consent. Without consent, the Act says the transaction is void.
The application must be made within six months of the agreement for the transaction, although the High Court can extend that period. Transmission under a will or on intestacy does not need consent unless it splits the land into separate titles. That is one practical difference between giving land now and leaving it in a will.
What the recipient gets
Under section 27 of the Land Registration Act, someone who receives land without paying for it takes it subject to any unregistered rights the giver held it subject to. Once registered, the transfer has the same effect as a sale.
In plain terms, the child or sibling steps into your shoes. If a relative has a customary claim or someone has been occupying part of the plot, those issues come with the gift. Sort them out first.
If the land is matrimonial property, the Land Registration Act says it is dealt with under the Matrimonial Property Act. If the giver's spouse may have an interest in the land, bring them into the conversation from the start and ask the advocate how it affects the transfer.
The steps, in order
- Search the title. Confirm the giver is the registered owner and that there is no charge, caution or court order on the land.
- Agree the scope. The whole parcel, or a portion? A portion needs a subdivision first, with survey and county approval, before it can be transferred.
- Get Land Control Board consent if the land is agricultural and in a land control area.
- Sign the transfer. Your advocate prepares it. If the giver is abroad, the advocate will tell you how a document signed outside Kenya must be witnessed and authenticated for the registry.
- Value and pay stamp duty, or claim the exemption that applies, with supporting documents.
- Lodge the transfer at the land registry with the original title, the stamped transfer, the consent where needed, and whatever identity documents the registry asks for, usually ID and KRA PIN copies for both sides.
- Search again after registration to confirm the land is now in the recipient's name.
Doing this from abroad
The common risk is the step between the parent abroad and the registry. A relative at home is handed the original title and a signed transfer, and the parent hears about progress by phone.
Keep control of a few things yourself:
- Instruct the advocate directly, by email, so instructions come from you.
- Pay stamp duty and fees through official channels against receipts in your name. Do not send cash to an intermediary.
- Ask for scans of the stamped transfer and the post-registration search.
- If you need someone to sign for you, use a specific power of attorney for this one transfer, not a general one.
Talk to the whole family before you sign. A sibling who hears about a gift only after it is registered has every reason to question it, even when the parent's intention was clear.
Questions people ask
Do I pay stamp duty when transferring land to my child? Generally yes. A gift is charged as if it were a sale, on the value of the land. The nil rate applies between husband and wife.
How do I transfer land from a parent to a child? Search the title, get Land Control Board consent if the land is agricultural, sign a transfer, value and stamp it, then lodge it at the registry.
Is a gift deed different from a transfer? The registry needs a transfer in the prescribed form. A separate "gift deed" or declaration can record the intention, but it does not move the title on its own.
Can a gift of land be reversed? Once registered, the land belongs to the recipient. Section 26 of the Land Registration Act allows a title to be challenged only on narrow grounds, such as fraud or misrepresentation the holder was party to, or a title acquired illegally. Otherwise, getting it back depends on the recipient agreeing to transfer it again.
Where Karibu fits
Karibu checks title records, which is where every gift transfer should start and finish. To check what is registered against a family plot before you instruct an advocate, ask bRRAIn, our property research assistant.
Get the stamp duty valuation in writing before anyone travels to sign.
Sources: Stamp Duty Act (Cap. 480), section 52 and Schedule items 11, 12A and 12B. KRA stamp duty FAQs. KRA capital gains tax. Land Control Act (Cap. 302), sections 6 and 8. Land Registration Act 2012, sections 26, 27 and 93. This article is general information, not legal advice. Speak to an advocate about your situation.