The Real Cost of Buying a Home in Kenya
A VorsaGroup Real Estate Guide
Buying a home is one of the biggest financial commitments you will ever make. And in Kenya, many first-time buyers quickly discover that the purchase price is only the beginning.
Before a property can legally transfer to your name, several mandatory closing costs must be paid. These costs cover legal work, government approvals, taxes, registration, and valuation.
At VorsaGroup Real Estate, we believe in empowering buyers with clear, honest information—so you can plan your finances with confidence and avoid last-minute surprises.
Here’s a complete breakdown of every major closing cost you should expect.
1. Stamp Duty — The Largest Closing Cost
Stamp duty is a tax charged by KRA on property transfers. It is calculated based on the government-assessed value, not necessarily the selling price.
Rates:
- 4% — urban / municipal areas
- 2% — rural areas
For example, buying a KSh 10 million home in Nairobi means paying KSh 400,000 in stamp duty alone.
You must pay this before the title can be transferred.
2. Legal Fees (Conveyancing Fees)
A licensed advocate is required to:
- Draft and review the sale agreement
- Conduct due diligence
- Verify the title and check for encumbrances
- Oversee the transfer process
Kenyan legal fees follow the Advocates Remuneration Order:
Typical range:
1.5% – 2% of the purchase price
- 16% VAT
These fees protect your interests and ensure the transaction is legally sound—an essential part of a safe purchase.
3. Valuation Fees
Before paying stamp duty, a government valuer must inspect the property and assign an official value.
If you’re getting a mortgage, the bank will also require an independent valuation, which carries its own fee.
Valuation costs vary depending on:
- Property type
- Location
- Size
- Intended use (residential or commercial)
4. Registration & Title Fees
After all taxes and valuations are completed, the documents are submitted to the land registry for final transfer.
Typical charges include:
- KSh 500 — transfer registration fee
- KSh 5,000 (approx.) — title deed processing/printing
- Any outstanding rates or land rent clearance fees
These amounts ensure your new title is legally recorded and issued.
5. Land Control Board (LCB) Consent
Required for agricultural land
If you’re purchasing agricultural land, you must obtain consent from the Land Control Board.
Cost:
- KSh 1,000 for standard approval
Without LCB approval, the transaction cannot be registered—making this step mandatory for rural and agricultural plots.
6. Mortgage-Related Costs (If Financing Your Home)
Financing your purchase through a mortgage adds a few more closing costs:
- Charge registration fee (about 0.1% of loan amount)
- Bank legal fees
- Mortgage processing fees
- Independent valuation fees
Each lender sets its own structure, so comparing banks is essential.
7. Other Optional or Situational Costs
Depending on the specific property, you may also encounter:
- Surveyor fees
- Land registry searches
- Home inspection costs
- Land rent or rates clearance
- Developer administrative charges (in some new-builds)
These are generally smaller amounts but can add to your total.
How Much Should You Budget for Closing Costs?
Most buyers in Kenya spend between:
2% – 8% of the purchase price
For example, on a KSh 10 million property:
- Low estimate (2%) → KSh 200,000
- High estimate (8%) → KSh 800,000
Your final figure depends on:
- Whether the property is urban or rural
- Valuation amounts
- Legal fees
- Mortgage or cash purchase
- Any additional due diligence requirements
VorsaGroup’s Final Word
Closing costs are an essential part of buying property in Kenya.
The largest expense is typically stamp duty, followed by legal and valuation fees. With the right preparation and guidance, these costs are predictable and manageable.
At VorsaGroup Real Estate, our role is to help you navigate every step of the process with clarity, order, and peace of mind—so your journey to homeownership is smooth, transparent, and secure.
