A buyer budgets for the purchase price and then discovers that the money leaving the account is noticeably larger. Stamp duty, legal fees, registration charges, clearances and bank charges all sit between an accepted offer and a registered title. Understanding what drives those costs helps a buyer or seller budget properly and question an estimate that looks unusual. This article explains the components of conveyancing costs in Kenya without quoting figures, because the amount depends on the transaction.
Quick answer
Conveyancing costs have three main parts: the advocate’s professional fee, statutory charges such as stamp duty and registration fees, and disbursements such as searches and clearances. The advocate’s fee is usually calculated by reference to the value of the transaction under the Advocates Remuneration Order, unless a different basis is agreed in writing. Ask for a written estimate before instructing anyone and confirm who bears each cost under the sale agreement.
How advocates’ fees are calculated
The Advocates Act and the Advocates Remuneration Order made under it provide the scale for professional fees in conveyancing. The fee is commonly calculated by reference to the value of the property or the transaction, and the Order sets out how the scale applies and what work the fee covers. The work usually includes drafting and negotiating the agreement, conducting searches, preparing the transfer, attending to stamping and registration, and reporting to the client.
A different basis, such as a fixed fee, can be agreed, but the basis of the charge should be confirmed in writing at the outset. The engagement letter should also say what is included, what will be charged as a disbursement and how any additional work will be priced. The Law Society of Kenya publishes material on the Remuneration Order.
The other costs in a property transfer
| Cost | What it covers | Practical point |
|---|---|---|
| Stamp duty | Tax on the transfer instrument | Assessed on the value of the instrument; the basis should be confirmed with the Kenya Revenue Authority |
| Registration fees | Fees payable to the lands registry | Confirm the current scale at the registry handling the transaction |
| Search fees | Official search and copies of documents | Pay for the official search, not an unofficial copy |
| Consent fees | Land Control Board consent where agricultural land is involved | Confirm whether the land is in a land control area |
| Clearance certificates | Rates and land rent clearances | Arrears must usually be cleared before registration |
| Charge or mortgage costs | Preparing and registering security where the purchase is financed | Separate professional and registration fees may apply |
Stamp duty: who pays and how value is assessed
In a typical sale the purchaser bears stamp duty, although the sale agreement should confirm the allocation between the parties. The duty is assessed on the value of the instrument, commonly by reference to the price paid or the assessed market value of the property, and the current basis and any relief should be confirmed with the Kenya Revenue Authority before completion. Stamping is a step in the registration process, not an optional extra.
Understating the value in the instrument creates a risk of assessment, penalty and delay. A valuation or an explanation of the price should be available if the transaction is unusual, for example where the property is transferred between related parties or where the price reflects works still to be completed.
Why two transactions rarely cost the same
Value is the main driver of professional fees and stamp duty, but the structure of the transaction matters. A purchase financed by a bank involves a charge in addition to the transfer. A sale by a company requires corporate resolutions and signatory documents. An apartment purchase raises management and service charge questions, and a subdivision or amalgamation adds survey and approval work. Each of these adds steps that a simple cash transfer does not involve.
Timing also affects cost. Delays caused by missing documents, unresolved consent or clearance arrears can increase professional work and holding costs. A transaction prepared properly at the start is usually cheaper overall than one repaired at completion.
Getting a written estimate and avoiding surprises
Ask for a written estimate that separates professional fees, disbursements, statutory charges and any amount that depends on assessment at completion. Confirm which party bears each cost under the sale agreement, and keep the estimate updated if the transaction changes. Where a charge or mortgage is involved, ask for the lender’s costs to be set out separately, because the bank’s charges are additional to the conveyancing fee.
The related articles on the conveyancing process in Kenya and stamp duty pitfalls explain the sequence and the points where costs arise.
Money handling and completion
Completion money should move through controlled channels with a clear record. In practice conveyancing funds are often handled through an advocate’s client account, which provides an audit trail of receipts and payments. Payments from abroad should be matched to the transaction and supported by bank records, and cash payments should be avoided. The sale agreement should state who receives what at completion and what happens if a step fails.
When to take advice
Advice is worth taking before signing the sale agreement, where the purchase is financed, where the property is held by a company or trust, where the land is agricultural or subject to a succession cause, and where the estimate is unclear or changes significantly mid-transaction. The firm’s real estate and conveyancing practice provides written fee estimates and handles the full transaction, and the banking and securities practice advises where the purchase involves lending.
Primary sources
- Advocates Act, Kenya Law, for the basis of the Advocates Remuneration Order.
- Law Society of Kenya, for material on the Advocates Remuneration Order and professional practice.
- Stamp Duty Act, Kenya Law, for the statutory basis of stamp duty on instruments.
This article is general information, not legal advice.
