Navigating Unregistered and Unexecuted Leases in Kenya

Warranties and indemnities are essential elements in any agreement for sale. The distinction between warranties and indemnities is critical as the remedies to which an innocent party will be entitled to will differ. Today, we discuss the differences, the consequences of a breach, and what you need to know before allowing or disapproving a warranty or an indemnity in an agreement for sale.

Residential Income Tax

The simplified tax regime on residential rental income was introduced in Kenya with effect from 1st January 2016.It applies to residential rental income ranging from KES 288,000 to KES 15,000,000 per annum. Under this regime, tax is calculated as 10% on gross rent received and is a final tax.The landlord is required to file a monthly return and make payment by 20th day of the following month.The penalty...

Tax Implications on Transfer of Land

The purchase of land or property is capital intensive and tax compliance is vital. Tax implications to the buyer The buyer is required to pay stamp duty on the acquisition of land. The stamp duty is calculated at 4% of the value of land while a 2% applies in instances where the land is located in other areas. Stamp duty is based on the value ascertained by a government valuer. This is done in...

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