Kenya’s Treasury is celebrating a major financial win after tax collections from property, land, and private share deals surged by a staggering 28 percent over the past financial year. By the close of June 2026, total revenues under this bracket reached Sh26.8 billion, generating an extra Sh5.82 billion in combined Capital Gains Tax (CGT) and stamp duty. This jump represents the fastest growth rate the country has seen in at least six years, marking a sharp rebound from the previous fiscal year when growth had cooled to a modest 3.71 percent with just Sh751 million added to the pot.
Looking at the broader trend over the last six years, the momentum is undeniable. Back in the 2020/21 financial year, tax collections stood at Sh15.51 billion before steadily climbing through consecutive cycles reaching Sh16.70 billion in 2021/22, Sh17.82 billion in 2022/23, Sh20.23 billion in 2023/24, and Sh20.98 billion in 2024/25. Overall, annual revenues from asset transfers have expanded by Sh11.29 billion since 2020, representing a massive 73 percent cumulative rise. In fact, more than half of that entire six-year gain was delivered in this past financial year alone, proving that property and financial asset transactions are rapidly becoming a vital engine for government revenue.
A major catalyst behind this sudden surge was a pivotal High Court decision that finally settled a long-standing headache for both investors and tax authorities. For context, Capital Gains Tax is charged at 15 percent on the net profit realized from selling taxable assets calculated after deducting costs like property upgrades, legal fees, and mortgage interest. Ever since Parliament tripled the CGT rate from 5 percent to 15 percent back in the Finance Act of 2022, disputes frequently erupted over exactly when the taxman could demand his cut, especially during complex corporate acquisitions involving high-profile firms like Inter consumer Products, Mayfair Bank, and Harleys Limited.
That uncertainty cleared up on July 31, 2025, when the High Court ruled on a landmark case involving a disputed Sh416.97 million tax demand. The court clarified that CGT becomes legally payable the moment a property or asset is sold and paid for, rather than waiting for formal registration at the Lands Registry. By aligning tax obligations directly with real-time cash flows rather than administrative paperwork, this legal precedent gave the Kenya Revenue Authority the green light to collect dues far more efficiently. With statutory remittances due by the 20th of the month following a deal, this newfound regulatory clarity has successfully unlocked billions for the national coffers.
