The Mandatory Additional Costs When Purchasing an Apartment in Kenya.

When buying an apartment in Kenya, many first-time buyers focus primarily on the purchase price yet, there are several mandatory additional costs that form part of the overall property acquisition process.
To make informed decisions and plan your finances effectively, it’s important to understand these legal and statutory charges that accompany every real estate transaction.
Here’s a breakdown of the key costs you should budget for :

1. Legal Fees (1% of the Purchase Price)

Every property purchase must be handled by an advocate who prepares, reviews, and registers the necessary documents.
The Law Society of Kenya (LSK) prescribes legal fees at 1% of the purchase price (subject to minimum thresholds).

2. VAT on Legal Fees (16%)

Legal services attract Value Added Tax (VAT) at 16%, charged on top of the legal fees.
This is a statutory tax payable to the Kenya Revenue Authority (KRA).

3. Stamp Duty on the Agreement for Sale.

Before execution, the Agreement for Sale must be stamped to make it legally valid.
This is a small but mandatory cost handled through your advocate.

4. Stamp Duty on Transfer

This is one of the major statutory charges, a tax paid to KRA upon transfer of ownership.
In most cases, it amounts to 4% of the property value (for urban areas) and 2% for agricultural land.
Your property cannot be registered in your name without this payment.

5. Disbursements on Assessment and Valuation

Before registration, the property is assessed and valued by a government valuer to confirm its market value for stamp duty purposes.
Buyers cater for valuation and assessment disbursements as part of the conveyancing process.

6. Surveying Costs for Geo-Referencing and Registration of Sectional Plans.

For apartments, the property is governed under the Sectional Properties Act.
Surveyors prepare and register geo-referenced sectional plans to legally define your unit.
These costs cover surveying, mapping, and Land Registry approvals.

7. Registration of the Transfer and Floor Plans.

Upon completion, the transfer documents and sectional plans are formally registered at the Lands Office.
Registration fees are payable to facilitate this process and ensure the title (Sectional Title or Share Certificate) is issued in your name.

8. Purchaser’s Contribution Toward Incorporation of the Management Corporation.

In apartment developments, owners collectively form a Management Corporation to manage common areas and services.
Each purchaser contributes to the cost of incorporation and acquisition of a share in this corporation making you a co-owner of the shared property.

These costs are mandatory and standard in property transactions across Kenya.
They ensure the legality, transparency, and secure registration of your ownership rights.
When budgeting for your next apartment purchase, always set aside an additional 6–8% of the purchase price to cover these legal and statutory obligations.

🏡 Ready to Own Your Apartment with Confidence?
At Mueni Homes, we guide you through every step of the buying process from selecting the perfect apartment to navigating all legal and statutory requirements seamlessly.
Let’s make your homeownership journey smooth, transparent, and stress-free.
Talk to us At Mueni Homes today for trusted real estate solutions and expert guidance.
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