IND 3
Miscellaneous fees and levies, and stamp duty
1Scope and legal basis
Two Acts impose charges that are neither income tax nor consumption tax in the ordinary sense. The Miscellaneous Fees and Levies Act 2016 consolidated the levies on trade: the import declaration fee (IDF) and the railway development levy (RDL) on imports, the export levy on specified raw exports, and (added in 2023) the export and investment promotion levy (EIPL) on imports of goods that compete with local manufacture; the Finance Act 2026 applied the EACCMA's assessment, collection and enforcement machinery to all of them and adjusted the aircraft exemptions. The Stamp Duty Act (Cap 480), administered by the Collector of Stamp Duties within the KRA since 2009, charges duty on instruments: transfers of land and of shares, leases, mortgages and charges, increases of share capital, and other documents in its Schedule; an unstamped instrument cannot be registered or produced in evidence. The Finance Act 2026 reinstated the stamp duty exemption for transfers of property into a real estate investment trust, and the affordable housing exemptions of 2023 remain.
2Key definitions
3Charge, computation and rates
The trade levies
| Levy | Rate | Base and payment | Main exemptions |
|---|---|---|---|
| Import declaration fee | 2.5% of customs value (minimum KES 5,000); 1.5% for raw materials and intermediate inputs of approved manufacturers under the duty remission and inputs schemes | Customs value; paid on lodging the import declaration before shipment, through the single window and customs entry | Goods for the President, diplomats, aid-funded projects, the disciplined forces and (2024) the National Intelligence Service and the Defence Forces Welfare Services; textile raw materials of Chapters 5407 and 6309 for local manufacture; EPZ and SEZ imports; specified machinery; complete aircraft of 2,000 to 15,000 kg and above 15,000 kg (Finance Act 2026) and aircraft parts; LPG storage tank goods for investments of KES 5 billion or more (from January 2027) |
| Railway development levy | 2% of customs value | Customs value; paid with the customs entry | The same exemptions as the IDF, plus goods for the standard gauge railway itself |
| Export levy | Raw hides and skins: 80% of customs value or USD 0.52 per kilogram; scrap metal and other Third Schedule goods at the Schedule rates | Customs value of the exports; paid on the export entry | Processed leather and finished products are outside the levy |
| Export and investment promotion levy | 17.5% (clinker, iron and steel); 10% (paper, sack kraft); 3% (ceramic tiles and sanitary ware) | Customs value of the imports; paid with the customs entry | EAC-origin goods; goods for the disciplined forces and aid projects |
Stamp duty rates
| Instrument | Rate | Notes |
|---|---|---|
| Transfer of land or buildings in a municipality or urban area | 4% of the value | On the higher of the consideration and the government valuer's assessed value; paid by the buyer before registration |
| Transfer of land outside a municipality (agricultural, rural) | 2% of the value | Same basis |
| Transfer of unquoted shares and marketable securities | 1% of the value | Paid by the transferee; the company registers the transfer only on a stamped instrument |
| Transfer of shares listed on the Nairobi Securities Exchange | Exempt | To promote the capital market |
| Lease of land or premises: up to three years | 1% of the average annual rent | Paid by the lessee |
| Lease of more than three years | 2% of the average annual rent | Plus duty on any premium at the transfer rate |
| Mortgage, charge or debenture (principal security) | 0.1% of the amount secured | Paid by the borrower; a supplemental security KES 20 per counterpart; a further charge at the same rate on the additional amount |
| Creation or increase of authorised share capital | 1% of the nominal capital created | Paid on the memorandum or the resolution increasing capital |
| Transfer of property between spouses; to a registered family trust; to a REIT; on death; under an affordable housing scheme; a company reorganisation approved by the Cabinet Secretary | Exempt | Family trust and REIT exemptions confirmed and reinstated by the 2024 and 2026 Acts; a group reorganisation exemption requires the Cabinet Secretary's approval and a legitimate business purpose |
| Agreements, powers of attorney, deeds, affidavits and other Schedule instruments | Fixed amounts (KES 100 to 2,000) | Nominal duty; still required for validity in evidence |
Buying a Nairobi apartment with a bank loan
Purchase price KES 12,000,000; the government valuer assesses 12,500,000; bank loan 8,000,000 secured by a charge; a 20-year lease of the land underlying the apartment already exists.
Stamp duty on the transfer: 4% × 12,500,000 (the higher of price and valuation) = KES 500,000, paid by the buyer within 30 days of the transfer's execution, before lodging at the lands registry. The seller pays capital gains tax separately on any gain at 15%.
Stamp duty on the charge: 0.1% × 8,000,000 = KES 8,000, paid by the borrower. If the bank later takes a further charge for an additional 2,000,000, duty is 2,000 on the further amount.
Had the apartment been bought under the government's affordable housing programme, the transfer would be exempt; had it been a transfer between spouses, exempt; had it been agricultural land in Nyandarua, 2%.
Other levies an examiner may raise
- Tourism levy: 2% of the gross turnover of hotels, restaurants and tourism establishments, paid monthly to the Tourism Fund by the 10th; catering levy is its predecessor name.
- Standards levy: 0.2% of the ex-factory price of manufactured goods, paid to the Kenya Bureau of Standards monthly by the 20th, with a minimum of KES 1,000 and a maximum of KES 400,000 a year, and exemption for manufacturers with turnover of KES 5 million or less.
- Petroleum development levy, road maintenance levy and petroleum regulatory levy: specific charges per litre of fuel collected with the pump price under the Petroleum Development Levy Order and the Road Maintenance Levy Fund Act; road maintenance levy is KES 25 per litre after the 2024 increase.
- Sugar development levy (4% of the value of sugar under the Sugar Act 2024), the Kenya Agricultural and Food Authority levies on tea, coffee and horticulture exports, and the National Industrial Training Authority levy of KES 50 per employee per month (LEV 2) are sector levies with their own funds.
- Motor vehicle: the annual advance tax on commercial vehicles (an income tax prepayment) and the transport licensing and NTSA fees; the proposed motor vehicle tax of 2024 was struck from the Finance Bill and has not returned.
4Compliance: returns, payment and penalties
The IDF is paid on lodging the import declaration form on the single window, and the RDL, export levy and EIPL are assessed and paid with the customs entry, so compliance follows the customs process; from July 2026 unpaid levies are recovered under the EACCMA and the Tax Procedures Act as though they were tax, with interest, agency notices and distress. Stamp duty is paid through iTax (the stamp duty module, with the instrument uploaded, the valuation obtained from the Ministry of Lands' valuer for land, and payment by bank or mobile money) within 30 days of execution of the instrument; late stamping attracts a penalty of 5% of the duty for each quarter of delay, and an instrument not duly stamped cannot be registered at the lands registry, the companies registry or the collateral registry, nor admitted in evidence in court. The Collector may assess the value where the consideration appears understated and may refer to the government valuer; the parties may appeal the valuation. Exemptions (spouses, family trusts, REITs, affordable housing, reorganisations) are claimed on application with the supporting documents, and a Cabinet Secretary's approval is needed for a group reorganisation exemption.
5Examinable focus
What KASNEB tests
Two dependable questions: the levies that stack on an import (IDF 2.5%, RDL 2%, EIPL where applicable) as part of the customs computation, with their exemptions; and a stamp duty computation on a land purchase with a mortgage, a share transfer or a lease, using the rates above (4% and 2% on land, 1% on unquoted shares and on share capital, 0.1% on a charge, 1% and 2% on leases) and stating who pays, when (30 days), and the consequence of not stamping. Distinguish stamp duty from capital gains tax on the same transaction (buyer versus seller), and know the exemptions the recent Finance Acts touched (family trusts, REITs, affordable housing, listed shares). The other levies appear as short knowledge parts: tourism levy 2%, standards levy 0.2%, NITA KES 50.