Yes, stamp duty is typically payable on the transfer of property, even if the property is gifted. Here’s a breakdown:

1. Stamp Duty on Property Transfers

In most jurisdictions, including Kenya, stamp duty is a tax paid on property transactions. The rate usually depends on the location and type of property being transferred (e.g., urban vs. rural land).

• For Urban Property: The standard stamp duty rate is 4% of the property’s value.
• For Rural Property: The standard rate is 2%.

2. Property Transfer as a Gift

Even when the property is gifted, the transaction is treated similarly to a sale in terms of stamp duty. This means that stamp duty is still applicable, calculated based on the market value of the property at the time of the transfer.

• Example: If you gift a house valued at Kshs 10 million, stamp duty would still be calculated on the value of Kshs 10 million at the applicable rate (either 2% or 4%).

3. Exceptions

There may be exemptions or reductions in certain cases, such as transfers between spouses, transfers within a company structure, or transfers to certain registered charities. It’s important to check local laws or consult a tax professional to confirm whether an exemption applies to your specific case.

In summary, stamp duty is payable whether the property is transferred as a sale or a gift, unless there is a specific legal exemption.

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