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Update on The Operationalization of Stamp Duty (Valuation of Immovable Property) Regulations, 2020

Chief Government Valuer publishes and appoints accredited private valuers in line with the Stamp Duty (Valuation of Immovable Property) Regulations, 2020 to operationalize various provisions of the Stamp Duty Act, Cap 480 Laws of Kenya. Property transfers under valuation must now be valued by appointed valuers under the Regulations.

Appointment of private valuers

The Stamp Duty (Valuation of Immovable Property) Regulations, 2020 recognize the integral role of private valuers in expediting the valuation process. Pursuant to Regulation 3, a person who wishes to be appointed as a private valuer may make an application to the Chief Government Valuer.  The Chief Government Valuer shall then register the private valuer if all the pre-requisite conditions are satisfied.  For instance, the applicant must have a physical office address and a valid tax compliance certificate issued under the Tax Procedures Act, 2015.

Impact on valuation of property

Regulation 4 encompasses the valuation of property by a Transferee. Pursuant to this regulation, a transferee of a property may apply to the Chief Government Valuer in writing for valuation of property.

The Transferee is also accorded the power elect to have the property valued by an appointed valuer. When the Transferee exercises this power, the Transferee shall be assigned an appointed valuer from the list of registered appointed valuers that is kept by the Chief Government Valuer.

It is also important to note that, the Chief Government Valuer must inform the Transferee of the name of the appointed valuer within seven working days from the date of the application.

After appointment, the valuation report must be submitted within 21 days in the case of a Government Valuer. On the under hand, where an appointed valuer is in charge of valuation, the report must be submitted immediately after the settlement of professional fees.

The valuation report is thereafter submitted to the Chief Government Valuer. This report must be accompanied with the following documents:

  • A copy of the cadastral map indicating the location of the immovable property;
  • A copy of the title to the immovable property;
  • KRA PIN Certificate of the Transferee; and
  • Any other relevant document required.

Objections where a person is aggrieved by the valuation report

The regulations envisage an appellate mechanism where a person is aggrieved by a valuation report. Pursuant to regulation 9, a person aggrieved by a valuation report may lodge an objection in writing to the Chief Government Valuer. The aggrieved party must clearly state the grounds for objection and the value of the property he considers to be correct.

The Chief Government Valuer shall then make a decision on the objection within twenty-one days.

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