Land, house and shares transactions hand Treasury Sh26.8 billion revenue

A version of this article appeared on The Business Daily.

Tax collections from the sale of land, houses, and shares in private companies climbed 28 percent to Sh26.8 billion in the financial year ending June 2026.

The increase points to a rebound in asset transactions across the country. The financial performance comes during a year in which the High Court of Kenya clarified when dues from property transactions become payable.

The surge in Capital Gains Tax (CGT) collections in the financial year to June 2026 was nearly eight times the Sh751 million added in the previous 2024/25 financial period.

During the previous year, growth in combined tax receipts from property and equity sales had slowed to a modest 3.71 percent, according to revenue performance records.

The Kenya Revenue Authority (KRA) collects the levy on gains accrued from the transfer of property situated in Kenya, including land, buildings, and unlisted shares.

The statutory tax rate currently stands at 15 percent of the net gain realized upon the completion of an asset transfer.

The High Court ruling provided legal clarity regarding the exact point of tax liability for property vendors and legal practitioners handling real estate conveyancing.

The resolution of the timeline ambiguity helped settle outstanding compliance obligations among property owners who had previously delayed transactions.

The performance of CGT revenues reflects a broader recovery in real estate transfers, commercial property acquisitions, and private corporate equity deals across key urban centers.

It also indicates improved compliance measures enforced by the tax administrator on conveyancing transactions across local registries.