Stamp duty on urban property such as Nairobi is generally 4% of the assessed value; qualifying rural property is generally 2% (Stamp Duty Act)
Stamp duty is paid by the buyer and settled before the transfer is registered (Ministry of Lands and Physical Planning)
Legal fees are governed by the Advocates (Remuneration) Order, so ask for a written quotation
The purchase price is not the only amount you need to budget for when buying an apartment in Kenya. Closing costs are the extra fees and charges that come with completing the sale, registering ownership and preparing the unit for occupation.
Knowing them early helps you work out the real amount you need and avoid financial pressure halfway through the purchase. Here is each cost, what it covers, and what to confirm in writing.
Before you work out your closing costs, see what is available at your budget. Browse verified apartments for sale in Kilimani and compare the total cost of each, not just the price tag.
What Are Closing Costs When Buying an Apartment?
Closing costs are the additional expenses you pay on top of the apartment's price.
They cover completing the purchase, registering ownership and getting the unit ready to live in.
Typical items include stamp duty, legal fees, service charge deposits, utility installation, sectional title registration and valuation.
Not every cost applies to every purchase, and amounts differ between developments.
2. Stamp Duty
Stamp duty is a government tax on the transfer of property ownership, and it is usually the largest extra cost.
Urban areas such as Nairobi generally attract 4% of the value assessed for stamp duty purposes.
A 2% rate generally applies to qualifying rural property, subject to classification and assessment.
Example: on a KSh 10 million apartment, a 4% estimate is KSh 400,000.
The buyer generally pays it, and it must be settled as part of transfer and registration.
The final figure depends on the official assessment, so confirm it with your advocate. Capital gains tax, by contrast, is the seller's responsibility and not part of your closing costs.
EXPERT TIP
Stamp duty is charged on the assessed value, which can differ from the price on your sale agreement. Ask your advocate to confirm the official assessment before you finalise your budget.
3. Legal Fees
Legal fees cover the professional work needed to document and complete the transaction.
In some developments, the developer appoints a legal team to prepare the sale agreement and coordinate documentation.
Confirm exactly what the developer's legal fees cover, and whether you also need your own independent advocate.
Some buyers hear estimates of around 1% for budgeting, but this is not a fixed or universal rate.
Conveyancing fees are subject to the Advocates (Remuneration) Order and depend on the scope of work.
Ask your advocate for a clear breakdown of professional fees, VAT where applicable and disbursements.
4. Service Charge Deposit
Most apartment developments have shared facilities that need ongoing maintenance, such as lifts, security systems, pools, gyms, gardens, parking and corridors.
A service charge is collected from owners to cover their share of running and maintaining these areas.
At handover, the developer may ask for an initial deposit or an advance payment covering a set period.
The amount depends on the development, the apartment size, the service charge rate and the payment terms.
Ask how much the initial payment is, what period it covers and when regular service charge payments begin.
Service charges vary widely between buildings, so compare them across developments such as apartments for sale in Westlands before you commit.
5. Water and Electricity Installation Fees
Some developments charge buyers separately for utility installation, connection or metering.
These charges may cover individual meters, connections to utility systems or other infrastructure to supply the unit.
The cost depends on the development and on what is already included in the price.
Ask whether the quoted amount covers the meter, the connection and the installation work.
6. Sectional Title Registration Fees
A sectional title gives you individual ownership of your apartment, together with rights and responsibilities for the shared property under the Sectional Properties Act, 2020.
You may pay charges for preparing, processing and registering the ownership documents.
Costs depend on the property's legal structure, the documents required and the government and professional charges that apply.
Ask the developer or your advocate whether these costs are included in the quoted closing costs.
This matters most when buying off-plan, where the timing of individual ownership documents may differ from a completed development.
7. Valuation and Related Fees
A valuation may be needed at different points in a purchase.
Mortgage buyers usually need a valuation arranged by the lender, which helps set the property's value for lending purposes.
Mortgage buyers may also pay a separate, smaller stamp duty on the loan charge, so ask your advocate to confirm it.
Not every cash buyer pays the same valuation costs, and some may sit inside a lender's or professional's quotation.
If you are taking a mortgage, ask your bank for a breakdown of valuation, processing and other property related charges before you proceed.
8. Owners' Corporation Fees
In a sectional title development, the owners' corporation manages and maintains the common property under the applicable legal framework.
Depending on the development, you may need to make an initial contribution towards the corporation or its operating costs.
This is separate from the recurring service charge, though how the two relate depends on how the development is managed.
Ask whether it is payable at handover, what it covers, and whether it is one-off or recurring.
9. Documentation and Administrative Fees
Some purchases involve extra charges for document preparation, processing, registration or other completion requirements.
These vary, so do not assume every development charges the same amounts.
Request an itemised closing cost statement showing each charge, the amount, who receives it and whether it is one-off or recurring.
10. How Much Should You Budget?
Total closing costs depend on the apartment's price, the stamp duty, legal fees, developer charges and the details of the transaction. Here is a budgeting illustration for a KSh 10 million apartment in Nairobi.
BUDGET ILLUSTRATION: KSh 10,000,000 APARTMENT
Stamp duty at an assumed 4%: KSh 400,000
Legal fees: obtain a transaction specific quotation
Service charge deposit: confirm with the developer
Water and electricity installation: confirm with the developer
Sectional title registration: confirm applicable charges
Valuation and other fees: depends on the transaction
Owners' corporation and documentation charges: confirm with the developer
Stamp duty alone is about KSh 400,000 here, and your total extra spending will be higher once other charges apply. This is an illustration, not a quotation, so get written estimates before you calculate what you need.
Does Commercial Property Attract Different Stamp Duty?
Stamp duty depends on the legal classification and nature of the transaction.
Buyers of offices and retail space should confirm the applicable rate with their advocate.
Do not assume commercial property attracts the same rate as a residential apartment.
Are Closing Costs Included in the Purchase Price?
Not always.
Some developers include certain charges in the advertised price, while others bill them separately.
Legal costs, utility installation, title registration and initial service charges are treated differently between developments.
Two apartments with similar prices can have very different total costs.
Before signing the sale agreement, ask for a written breakdown of all extra costs, and check which are due at booking, during the purchase and at handover.
Five Questions to Ask Before You Buy
What is the total amount payable above the purchase price?
How much stamp duty is expected, and who confirms the official assessment?
Are legal fees included, and what work do they cover?
Which charges are due at handover, including service charge deposits and utility installation?
What extra costs could arise during title registration or after taking possession?
Get the answers in writing so you can compare properties and plan your finances accurately.
Planning to buy in Nairobi? Explore apartments for sale in Kileleshwa
VERDICT
The advertised price is only the starting point. Stamp duty, legal fees, service charge deposits, utility installation and title registration all change how much cash you need, so budget beyond the apartment price and insist on an itemised statement.
Why Work With Vivara Realty
We help buyers explore apartments for sale in Nairobi and understand the practical points involved in choosing a property.
Our team can walk you through the questions to ask before you commit.
We recommend you confirm all costs with your advocate, the developer and the relevant government authorities.
Planning to buy in Nairobi? Explore
apartments for sale in Lavington, then speak to our team about the full cost of any unit you like.
Frequently Asked Questions
How much are closing costs when buying an apartment in Kenya?
It varies by transaction. Stamp duty alone is generally 4% in urban areas such as Nairobi, and legal fees, service charge deposits, utilities and title charges come on top.
Who pays stamp duty, the buyer or the seller?
The buyer generally pays stamp duty. The seller is responsible for capital gains tax on any gain.
Is the service charge deposit refundable?
It depends on the terms in your sale agreement. Ask the developer in writing whether it is a deposit, an advance payment or a one-off fee.
Do I need my own advocate if the developer has one?
Not always, but confirm what the developer's legal team covers and whether independent advice is advisable for your purchase.
References
Stamp Duty Act, Cap 480, Kenya Law.
Ministry of Lands and Physical Planning, Ardhisasa land information and title platform.
Kenya Revenue Authority, stamp duty on property transfers.
Sectional Properties Act, 2020, Kenya Law.
Advocates (Remuneration) Order, Kenya Law.
National Construction Authority, contractor and developer registration requirements.
Disclaimer: This article provides general property buying information for educational purposes. Actual charges depend on the property, transaction structure, applicable law and official assessments. Confirm all costs with the relevant advocate, developer and government authorities before making a purchase.