Land Valuation in Kenya.
What is Land Valuation in Kenya?
Land valuation is the process of analyzing a property to determine its market value for various purposes such as taxation, leasing, sale, or acquisition. Land valuation in Kenya typically costs between KES 50,000 and KES 100,000, depending on factors such as the location and size of the property.
The minimum amount that can be paid for valuation is KES 15,000, and there is a KES 5,000 rate per hour for valuation consultancy.
Legal fees for acting in the land purchase process are charged at 1.5% of the purchase price for land with a purchase price from KES 5,000,001 -100,000,000. Other fees include stump duty charged at 4%, disbursement, and registration fees.
In Kenya, until January 2021, land valuation for Stamp Duty, Ground Rent, and Rates was carried out by valuers from the Valuation Department in the Ministry of Physical Planning.
These officials valued land to ensure that revenue due to the State was collected and that public property was sold or acquired in a manner that protected the fiscal interests of the government.
To meet the growing demand for land valuation in Kenya, the government amended Section 10A of the Stamp Duty Act, Cap 480 to allow private valuers to undertake valuation for Stamp Duty. A list of accredited valuers is published on the website of the Lands Ministry for public perusal.
Valuation reports help protect the monetary interests of landlords whose property has been acquired by the State for the construction of roads, dams, or other public infrastructure.
The land valuation process involves analyzing recent comparable sales and taking into account features such as size, topography, layout, ease of access, planning restrictions, and location.
Valuers use recent comparable sales to estimate the value of the land and make adjustments based on significant variances found among the properties.
Land Valuation Fees in Kenya.
The cost of land valuation in Kenya is provided under the Scale of Fees, Valuers Act Cap. 532 of the laws of Kenya. The Valuers (Forms & Fees) (Amendment) Rules, 2011 provides details on the fees.
1.) Urban, Rating, and Agriculture Valuation.
The cost for urban, rating, and agriculture valuation is 1.0% for the first Kshs. 2,000,000 and 0.25% for the residue.
2.) Compulsory Acquisition Valuation.
The cost for compulsory acquisition valuation is 2.0% for the first Kshs. 2,000,000 and 0.5% for the residue.
3.) Rental Valuation.
Rental valuation costs 10% for the first Kshs. 400,000 per annum and 5% for the residue.
4.) Minimum Valuation and Consultancy Fees.
The minimum valuation fees are Kshs. 15,000, and consultancy fees are a minimum of Kshs. 5,000 per hour, where such consultancy does not involve carrying out a valuation and compiling a valuation report, and advising on the value of the property.
5.) Travelling Expenses and disbursements.
Traveling expenses and disbursements are based on the costs incurred in undertaking the valuation.