The National Treasury and Planning Cabinet Secretary has published in the Kenya Gazette the Stamp Duty (Valuation of Immovable Property) Regulations 2020 (the “Regulations”) which could see an end to the disquiet around private property valuers’ persistent inability to process property deals for stamp duty purposes.
The Regulations require that a private valuer be appointed by the Chief Government Valuer under the Stamp Duty Act who shall maintain a register of registered valuers. A person intending to apply for appointment must be registered under the Valuers Act. They must also provide proof of a physical office address and a valid tax compliance certificate issued under the Tax Procedures Act. The Government Valuer will subsequently approve or reject the applications within thirty (30) days. Any appointment is valid for three (3) years and is renewable.
An appointed valuer (private valuer) can only act after appointment by the Government Valuer in each case. A transferee of any immovable property shall apply to the Government Valuer in writing for a valuation of the property. If a private valuer is appointed, the Government Valuer will inform the transferee of the appointed valuer’s name within seven (7) days of the application. The transferee shall bear all the valuation costs.
A valuation report on the subject property will consequently be submitted to the Government Valuer by the appointed valuer immediately after payment has been made to them by the transferee. The report must be accompanied by copies of the title, cadastral map indicating the property’s location, the transferee’s KRA PIN certificate and any other relevant documents. The reports shall also include the tenure and details of the property, valuation methodology used, valuation basis, the market value, the valuer’s signature and seal amongst other information.
The valuation report shall be reviewed by the Government Valuer and where approved, the transferee and stamp duty collector will be notified of the approved market value and payable stamp duty. Otherwise, the Government Valuer will inform the appointed valuer of any deficiency in the report. The approved value shall be the value as at the date of transfer or conveyance of property. An issued valuation report shall be valid for twelve (12) months from the approval date.
Any dissatisfaction with the valuation report may be made known to the Government Valuer who may dismiss or adjust the report where justified. Similarly, an objection can be withdrawn.
The implementation of these regulations is expected to see valuation and stamping processes expedited, effectively reducing lengthy conveyancing processes timelines.
The Regulations can be accessed here.
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