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What Is Another Name for a Realtor?

When you hear the word “Realtor”, you probably picture someone showing clients houses, negotiating property prices, and closing land deals. But have you ever wondered — is “Realtor” just another name for a real estate agent? Or is it something different altogether? In Kenya and many other countries, these terms — Realtor, Agent, Broker, Property Consultant — are often used interchangeably. However, in professional real estate practice, each has its own meaning, legal standing, and level of qualification. In this guide, we’ll explain exactly what a Realtor is, what other names they go by, how these titles differ in Kenya and globally, and which one you should use when describing your profession or hiring a property expert. 1. Understanding the Term “Realtor” The word “Realtor” is actually a registered trademark owned by the National Association of REALTORS® (NAR) in the United States. That means not every real estate agent can call themselves a Realtor. In the U.S., only members of NAR ...
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Who Pays Stamp Duty in Kenya: The Buyer or the Seller?

Who pays stamp duty in Kenya — the buyer or the seller? Learn the legal position, costs involved, and practical insights into stamp duty obligations when buying or selling land or property in Kenya.


Introduction


When buying or selling land or property in Kenya, one of the most commonly asked questions is: “Who pays stamp duty — the buyer or the seller?”


This question matters because stamp duty is not cheap. For property worth KSh 10 million in Nairobi, you could be looking at KSh 400,000 in stamp duty alone. Knowing who shoulders this cost can save you from financial shocks and even disputes during the transfer process.



In this comprehensive guide, we’ll break down:


The legal framework governing stamp duty in Kenya


Who is responsible for paying it (buyer vs seller)


Practical examples and scenarios


Strategies to reduce disputes during property transactions


A step-by-step guide on stamp duty payment in Kenya


By the end, you’ll know exactly how stamp duty works, who pays it, and how to handle it when buying or selling property in Kenya.


What is Stamp Duty in Kenya?


Stamp duty is a tax charged on legal documents during the transfer of assets such as land, houses, and other property.


In real estate, stamp duty is imposed on the transfer of land or property ownership. The tax ensures that the transaction is recognized by the government, and the new property owner’s details are legally registered.


Stamp Duty Rates in Kenya (2025)


4% of property value — for land and property in urban areas (e.g., Nairobi, Mombasa, Kisumu, Nakuru)


2% of property value — for land and property in rural areas


For example:


Buying a plot in Ruiru worth KSh 5,000,000 (urban) → Stamp duty = KSh 200,000


Buying farmland in Kitale worth KSh 5,000,000 (rural) → Stamp duty = KSh 100,000


Who Pays Stamp Duty in Kenya — Buyer or Seller?


The Legal Position


According to the Stamp Duty Act (Cap 480, Laws of Kenya), the obligation to pay stamp duty lies with the purchaser (buyer).


This means:


The buyer is responsible for ensuring stamp duty is calculated and paid.


The seller is not required to pay stamp duty on the sale of property.


In short: The buyer pays stamp duty in Kenya.


Why the Buyer Pays Stamp Duty


There are three main reasons why the responsibility is given to the buyer:


1. Ownership benefit → The buyer becomes the new legal owner, so it’s their responsibility to pay the tax for registering ownership.


2. Government enforcement → Without stamp duty payment, the buyer cannot complete registration of the title deed or lease.


3. Fairness principle → The seller is only disposing of property and already enjoys gains from the sale price. The buyer is the one gaining a new asset.


Practical Scenarios in Kenya


Scenario 1: Buying Land in Nairobi


Mary buys a plot in Kilimani for KSh 20 million.


Applicable stamp duty = 4% → KSh 800,000


Responsibility: Mary (the buyer) pays this amount before the property is registered in her name.


Scenario 2: Rural Farmland Purchase


John buys farmland in Eldoret for KSh 3 million.


Applicable stamp duty = 2% → KSh 60,000


Responsibility: John pays before the title is transferred.


Scenario 3: Seller Assistance


Sometimes, sellers may agree to share stamp duty costs as part of negotiations, especially in high-value deals. However, this is purely an agreement between the two parties. Legally, the buyer remains the obligated party.


Exceptions to Stamp Duty


While the buyer usually pays stamp duty, there are certain exemptions:


First-time home buyers → Under affordable housing schemes, stamp duty may be waived.


Transfers between spouses → No stamp duty if transferring land to a spouse.


Transfers by inheritance → Exemptions apply for transfers by will or succession.


Government affordable housing projects → Reduced or zero stamp duty for some projects.


Risks of Not Paying Stamp Duty


If the buyer fails to pay stamp duty:


1. Title cannot be registered → The property remains in the seller’s name.


2. Penalties and fines → Late payments attract penalties.


3. Risk of fraud → Unregistered land can be resold by unscrupulous sellers.


4. Legal disputes → Without proof of stamp duty payment, ownership can be challenged.


Step-by-Step: How Buyers Pay Stamp Duty in Kenya


Step 1: Valuation by Government


The property is valued by the Government Valuer to determine stamp duty payable.


Step 2: Payment Calculation


4% for urban areas


2% for rural areas



Step 3: Payment Through iTax


Stamp duty is paid via Kenya Revenue Authority (KRA) iTax system.


Step 4: Acknowledgment Receipt


The buyer receives an e-stamp certificate confirming payment.


Step 5: Registration


The property is then registered at the Ministry of Lands, and a new title deed or lease is issued in the buyer’s name.


Example Stamp Duty Calculations


Property Value Location Rate Stamp Duty Amount Who Pays?


KSh 10M Nairobi 4% KSh 400,000 Buyer

KSh 5M Kitale 2% KSh 100,000 Buyer

KSh 3M Nakuru 4% KSh 120,000 Buyer

KSh 15M Ruiru 4% KSh 600,000 Buyer


Common Misunderstandings


“The seller should pay since they’re making money.” → Wrong. Legally, the seller has no obligation.


“We can skip stamp duty to save money.” → Dangerous. The property won’t be legally yours.


“The lawyer can pay for me.” → Lawyers only facilitate; the buyer must provide funds.


Tips for Buyers in Kenya


1. Budget for stamp duty when planning to buy property.


2. Negotiate with seller if you want cost-sharing.


3. Confirm valuation to avoid inflated duty amounts.


4. Work with a lawyer to avoid fraud.


5. Pay promptly to avoid penalties.


Conclusion


So, who pays stamp duty in Kenya: the buyer or the seller?


✅ Answer: The buyer pays.


The Stamp Duty Act clearly places the burden on the buyer. The seller is not legally required to contribute. However, in practice, buyers and sellers may negotiate different arrangements.


As a buyer, always budget for stamp duty in advance. For high-value properties, this can run into hundreds of thousands or even millions of shillings. Work with a lawyer, use KRA iTax for payment, and ensure the process is properly documented.


Stamp duty may feel like an extra burden, but it’s your guarantee of secure ownership and legal protection over your land or property in Kenya.

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