What Does It Really Cost to Sell a Property in Kenya?

When you agree to sell a house or piece of land in Kenya for KSh 15 million, you naturally expect to see KSh 15 million in your bank account.

That rarely happens.

Between taxes, professional fees, and administrative clearances, several expenses chip away at that final figure. Some of these costs are mandatory, others depend on your specific situation, and a few are completely optional.

If you want to know what you will actually take home after the deal closes, here is where your money goes.

1. Does the Seller Pay Any Tax When Selling Property?

Yes. If your sale results in a taxable gain, you may have to pay Capital Gains Tax (CGT) to the Kenya Revenue Authority (KRA) at 15%.

KRA does not charge CGT on the full selling price. Instead, KRA levies CGT on your net gain—the transfer value minus incidental transfer costs and the adjusted acquisition cost.

Under KRA guidelines, you can lower this taxable net gain by deducting allowable expenses, including:

• Your original purchase or construction cost
• Legal and conveyancing fees you paid during acquisition and transfer
• Valuation fees and advertising costs you incurred
• Documented enhancement or capital improvement expenses (such as installing utility connections, paving, or building perimeter walls)

Note on Stamp Duty: The buyer generally pays Stamp Duty as a transfer cost, so do not confuse it with Capital Gains Tax, which you pay as the seller.

2. How Much Will an Estate Agent Charge to Sell Your Property?

If you choose to hire a registered estate agent to market your property and manage buyers, you will pay an agreed commission upon a successful sale.

In the Kenyan market, a single statutory rate does not fix agency commissions; instead, you and the agency agree on the rate in writing. If the agent registers for Value Added Tax (VAT), they will add 16% VAT to their service fee.

Before listing your property, review and sign an agency agreement that outlines:

• The exact commission rate or fee structure
• Whether you are signing an exclusive or open listing
• The specific point at which you pay commission to your agent

If you find a buyer directly without using an agent, you avoid this cost entirely. Any extra marketing expenses, such as paid digital campaigns or specialized staging, remain optional choices you control.

3. What Legal and Professional Costs Could You Incur?

Most property sales in Kenya require advocates to handle conveyancing, verify completion documents, and oversee the transaction process.

The Advocates (Remuneration) Order under Schedule 1 governs legal fees for conveyancing. Lawyers calculate scale fees cumulatively based on your property’s value:

• 2% on the first KSh 5,000,000
• 1.5% on the balance up to KSh 100,000,000

Crucially for you as a seller, if your advocate does not prepare the Agreement for Sale (because the buyer’s advocate traditionally drafts it), the Advocates Remuneration Order reduces your lawyer’s scale fee by one-third. Your advocate will also add 16% VAT to their legal fees.

Discharging an Existing Mortgage

If you carry an outstanding mortgage or bank charge on the property, your lender will charge administrative and legal fees to discharge the charge before you can complete the transfer.  

4. What Outstanding Property Costs Need to Be Cleared Before the Sale?

Before a land registry will register your property transfer, you must prove that you have settled all underlying statutory obligations tied to the land:

• Land Rates: If your property sits within county jurisdictions (such as Nairobi City County or Kiambu County), you must secure a Land Rates Clearance Certificate confirming you have paid all annual rates and accrued penalties in full.
• Land Rent: For leasehold properties, you must get a Land Rent Clearance Certificate from the Ministry of Lands.
• Service Charges & Utilities: If you are selling an apartment or sectional property, management rules may require you to pay off outstanding service charges and utility balances.

These obligations are not new “transaction fees” created by the sale; they are pre-existing debts you must clear so the title transfer can proceed.

5. Are There Other Costs You Might Have to Pay Before Selling?

Depending on your property’s condition and your sales strategy, you might choose to pay optional upfront expenses before placing the property on the market:

• Minor structural repairs, cosmetic touch-ups, or repainting
• Professional cleaning or landscaping
• High-resolution photography or property tour media

Evaluate these optional pre-sale costs against whether the work will actually improve your property’s marketability or help you secure a higher purchase price.

6. So, How Much Money Will You Actually Keep From the Sale?

To see how this works in real life, let’s look at a practical example based on a potential sale.

Imagine you bought a house a few years ago for KSh 10 million (spending KSh 300,000 on legal and improvement costs), and you are now selling it for KSh 15 million.

In this scenario, total deductions come to roughly KSh 1.36 million (about 9% of the selling price). You walk away with approximately KSh 13.63 million.

Conclusion

Knowing your numbers upfront changes how you negotiate. When you accept an offer, you aren’t just agreeing to a headline price; you are agreeing to what remains after KRA, your advocate, the county government, and your agent take their share.

Before listing your property or accepting your first deposit, draft a quick net-proceeds sheet using your specific purchase history and current rates. That way, when the final funds hit your bank account, you won’t face any surprises.