Stamp Duty Cap 480 - as Plain Text by MWakili
LAWS OF KENYA The STamp DuTy acT Chapter 480 Revised Edition 2011 (2010) Published by the National Council for Law Reporting with the Authority of the Attorney General www.kenyalaw.org 2 CAP.
480 Stamp Duty [Rev.
2011 CHAPTER 480 THE STAMP DUTY ACT ARRANGEMENT OF SECTIONS part I - prelImInary Section 1 - Short title.
2 - Interpretation.
3 - Application of Act.
4 - Ofcers.
part II - provIsIons applICable to Instruments Generally Charge of Duty upon Instruments 5 - Liability to stamp duty.
6 - Time of stamping and liability for stamping.
7 - Duties, how to be paid.
8 - How instruments are to be written and stamped.
9 - Instruments to be separately charged in certain cases.
10 - Facts and circumstances affecting duty to be set out in instruments.
10A - Valuation by Government Valuer.
11 - Mode of calculating ad valorem duty in certain cases.
12 - Instruments to be in English.
Use of Adhesive Stamps 13 - General directions as to cancellations of adhesive stamps.
14 - Defacement of adhesive stamps.
15 - Penalty for frauds in relation to adhesive stamps.
Denoting Stamps 16 - Denoting stamps.
Adjudication Stamps 17 - Adjudication.
18 - Persons dissatised may appeal.
Rev.
2011] Stamp Duty CAP.
480 3 Section Production of Instruments in Evidence and Instruments not duly Stamped 19 - Non-admissibility of unstamped instruments in evidence; and penalty.
20 - Stamping out of time.
21 - Certain improperly stamped instruments.
22 - Effect of non-compliance in case of certain bills of exchange.
23 - Instruments executed out of Kenya.
Miscellaneous 24 - Refund where instrument erroneously assessed.
25 - Splitting.
26 - Penalty for evasion of duty by splitting.
27 - Instruments reserving interest.
28 - Stamp where value of subject-matter is indeterminate.
29 - Recovery of duty and penalties.
part III - provIsIons applICable to partICular Instruments Agreements 30 - Certain mortgages of stock to be chargeable as agreements.
31 - Hire purchase agreement to be stamped.
Bills of Exchange and Promissory Notes 32 - Meaning of bill of exchange.
33 - Meaning of promissory note.
34 - Provisions as to stamping foreign bills and notes.
35 - As to bills and notes purporting to be drawn abroad.
36 - Penalty for issuing, etc., any unstamped bill or note.
37 - One bill only of a set need be stamped.
Chattels Transfers 38 - Chattels transfers.
Companies 39 - Charge of duty on capital of companies.
4 CAP.
480 Stamp Duty [Rev.
2011 Section Contract Notes 40 - Provision as to contract notes.
41 - Obligation to execute contract notes.
42 - Extension of provisions as to contract notes to sale or purchase of options.
Conveyances on Sale 43 - Meaning of conveyance on sale.
44 - How ad valorem duty is to be calculated in respect of stock and securities.
45 - How consideration consisting of periodical payments to be charged.
46 - Conveyance on sale with further covenant.
47 - How conveyance in consideration of a debt, etc., to be charged.
48 - Direction as to duty in certain cases of conveyances, mortgages and settlements.
49 - Certain contracts to be chargeable as conveyances on sale.
50 - As to sale of an annuity or right not before in existence.
51 - Principal instrument how to be ascertained.
52 - Duty on gifts inter vivos.
Conveyances on any Occasion except Sale or Transfer 53 - What is to be deemed a conveyance on any occasion not being a sale or mortgage.
Duplicates and Counterparts 54 - Provision as to duplicates and counterparts.
Leases and Licences 55 - Agreements to be charged as leases.
56 - Duty on leases where consideration consists of rent.
57 - Duty on leases in other cases.
58 - Duty on leases granted in perpetuity.
59 - Leases, how to be charged in respect of produce, etc.
60 - Directions as to duty on instruments increasing rent and on certain leases.
61 - Duty on leases granted for inadequate consideration.
62 - Duty where consideration cannot be xed with accuracy.
63 - Licences.
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2011] Stamp Duty CAP.
480 5 Section Marketable Securities 64 - Meaning of marketable securities for charge of duty and foreign and Commonwealth share certicate.
65 - Penalty on issuing, etc., foreign etc., security not duly stamped.
66 - Foreign or Commonwealth securities may be stamped without penalty.
67 - Meaning of marketable security transferable on delivery and instrument to bearer.
Mortgages, etc.
68 - Meaning of mortgage and equitable mortgage and provisions in relation to equitable mortgages.
69 - Direction as to duty in certain cases.
70 - Security for future advances, how to be charged.
Partitions 71 - Partitions.
Policies of Insurance 72 - Meaning of policy of insurance.
73 - Meaning of policy of marine insurance.
74 - Repealed.
75 - Continuation clause in policy of marine insurance.
76 - Policy for voyage and time chargeable with two duties.
77 - No policy valid unless duly stamped.
78 - Stamping of policies of marine insurance which are subject to a contingent increase of premium.
79 - Legal alterations in policies may be made under certain restrictions.
80 - Stamping of policies of insurance on ships under construction, etc.
81 - Penalty on assuring unless policy duly stamped.
82 - Meaning of policy of life insurance and policy of insurance against accident.
83 - Employers indemnity insurance.
84 - Penalty for not making out policy or making, etc., any policy not duly stamped.
85 - Assignment of policy of life insurance to be stamped before payment of money assured.
6 CAP.
480 Stamp Duty [Rev.
2011 Section Receipts 86 - Provisions as to duty upon receipts.
87 - Certain forms of receipts not dutiable.
88 - Obligation to give receipt in certain cases, and penalty for offences in relation to receipts.
Settlements 89 - As to settlement of policy or security.
90 - Settlements, when not to be charged as securities.
91 - Duty when settlement made in pursuance of agreement.
Share Warrants 92 - Penalty for issuing share warrant not duly stamped.
Stock Certicates to Bearer 93 - Meaning of stock certicate to bearer.
94 - Penalty for issuing stock certicate unstamped.
part Iv - relIef from stamp Duty In CertaIn Cases 95 - Reconstruction or almalgamation of companies.
96 - Transfers between associated companies.
97 - Exemption of building societies documents from stamp duty.
part v - allowanCes for stamps In CertaIn Cases 98 - Allowance for spoiled stamps.
99 - Conditions upon which applications under section 98 shall be granted.
100 - Allowance for misused stamps.
101 - Allowance for spoiled or misused stamps, how to be made.
102 - Allowance for stamps not required for use.
part vI - mIsCellaneous 103 - As to discontinuance of dies.
104 - Conditions and agreements as to duty void.
105 - Compounding duty on cheques.
106 - Power to exempt instruments.
107 - Registers, books, etc., to be open to inspection.
108 - Penalty for enrolling, etc., instrument not duly stamped.
109 - Responsibility for loss of or damage to instrument.
110 - Collector may administer oaths.
Rev.
2011] Stamp Duty CAP.
480 7 Section part vII - CrImInal offenCes anD proCeDure 111 - Penalty for not drawing full number of bills or marine policies purporting to be in sets.
112 - Penalty for post-dating bills and for other devices to defraud the revenue.
113 - Penalty for frauds in relation to stamp duties.
114 - Liability in the case of corporate bodies and rms.
115 - Search.
116 - Power to reward informers.
part vIII - General 117 - Exemptions from stamp duty.
118 - Expenses.
119 - Regulations.
119A - Power to amend schedule 120 - Appointments under Cap.
259 (1948).
sCheDule.
8 CAP.
480 Stamp Duty [Rev.
2011 31 of 1958, 5 of 1960, CHAPTER 480 15 of 1961, L.N.
153/1962, THE STAMP DUTY ACT L.N.
176/1962 , L.N.
761/1963, L.N.
236/1964, Commencement: 1st October, 1958 21 of 1966, 29 of 1967, L.N.
280/1967, An Act of Parliament to make provision for the levying and 54 of 1968, management of stamp duties; and for purposes connected 13 of 1972, therewith and incidental thereto 10 of 1973, 10 of 1981, 8 of 1985, L.N.
195/1985, 10 of 1990, 11 of 1992, L.N.
18 of 1993, 6 of 1994, 13 of 1995, 8 of 1997, 4 of 1999, 6 of 2005, 10 of 2006, 9 of 2007, 8 of 2008.
6 of 2009, part I - prelImInary 10 of 2010, 4 of 2012.
Short title.
1.
This Act may be cited as the Stamp Duty Act.
Interpretation.
2.
In this Act, except where the context otherwise requires - 4 of 1999, s.
69, 6 of 2009, Sch.
collector means the Kenya Revenue Authority established No.
2 of 1995.
under the Kenya Revenue Authority Act.
consideration or valuable consideration includes valuable consideration in money or moneys worth, marriage and natural love and affection; duty and stamp duty mean any stamp duty for the time being chargeable by any written law; executed and execution, with reference to instruments not under seal, mean signed and signature; instrument includes document; marketable security includes a security of such a description as to be capable of being sold on any stock exchange; Rev.
2011] Stamp Duty CAP.
480 9 material includes every sort of material on which words and gures can be expressed; money includes all sums expressed in Kenya currency or in the currency of any country; receipt includes a printout from a cash register, or a teller 6 of 2005.
machine showing a list of goods purchased and amount tendered or to be tendered for the goods being sold; stamp means a stamp embossed or impressed by means of a die or an adhesive stamp; stamped and duly stamped mean that the instrument referred to is stamped with the required and sufcient stamp and that the stamp has been cancelled, if necessary, in accordance with the provisions of this Act; stock includes any share in the stocks transferable at the Bank of England, and any share in the stocks or funds of the government of any country in the Commonwealth or of any foreign country, or in the capital stock or funded debt of any local authority, corporation, company or society in Kenya or in any country in the Commonwealth or of any foreign corporation, company or society.
3.
This Act shall apply to all stamp duties and to all fees and Application of Act.
penalties which are for the time being directed to be collected or received by means of stamps under or by virtue of any written law.
4.
The collector may appoint such ofcers as may be appropriate Ofcers.
for the purpose of collecting stamp duty under this Act.
L.N.
236/1964, 4 of 1999, s.
70.
part II - provIsIons applICable to Instruments Generally Charge of Duty upon Instruments 5.
Subject to the provisions of, and to the exemptions contained Liability to stamp duty.
in, this Act and any other written law, every instrument specied in the 5 of 1960, s.
2, Schedule, wheresoever executed, which relates to property situated, or 4 of 2012, s.31.
to any matter or thing done or to be done, in Kenya, shall be chargeable with the stamp duty specied in that Schedule.
Provided that the Government shall not charge stamp duty twice where a person moves a mortgage from one bank to another.
10 CAP.
480 Stamp Duty [Rev.
2011 Time of stamping and 6.
(1) Subject to the provisions of this Act or of any other written liability for stamping.
law, every instrument, unless it is written on duly stamped material, 5 of 1960, s.
3.
shall be duly stamped with the proper duty before the expiration of thirty days after it is rst executed, or after it has been rst received in Kenya in case it is rst executed at any place out of Kenya, unless the opinion of a collector with respect to the amount of duty with which the instrument is chargeable has, before the expiration of that period, been required under section 17.
(2) If the opinion of a Collector with respect to the amount of duty with which any instrument is chargeable has been required under section 17, the instrument shall be stamped in accordance with the assessment of the collector within twenty-one days of the date of the notice of the assessment.
(3) Where in the Schedule or in any other written law it is specied that an instrument is to be stamped before execution, it shall be stamped before execution by any party thereto.
(4) If any instrument which is chargeable with stamp duty is not duly stamped, the person or persons respectively specied in the Schedule or in any other written law as being liable for stamping shall be liable, or jointly and severally liable, as the case may be, to the collector for the payment of the specied duty.
(5) If any instrument which is liable to stamp duty is not duly stamped, every person specied in the Schedule or in any other written law as being responsible for stamping shall also be guilty of an offence and liable to a ne not exceeding two thousand shillings.
(6) Where in the Schedule or in any other written law the responsibility for stamping is imposed upon more persons than one, every person on whom that responsibility is imposed may, if the instrument is not duly stamped, be proceeded against either civilly or criminally without reference to any civil liability of the parties inter se for the payment of the stamp duty.
Duties, how to be 7.
Except as otherwise expressly provided in this Act, all duties paid.
with which any instruments are chargeable shall be paid, and payment shall be denoted upon the instruments, by means of stamps in such manner as may be prescribed.
How instruments 8.
(1) Every instrument written upon stamped material shall be are to be written and written in such manner, and every instrument partly or wholly written stamped.
before being stamped shall be so stamped, that the stamp may appear on the face of the instrument, and cannot be used for or applied to any Rev.
2011] Stamp Duty CAP.
480 11 other instrument written upon the same piece of material.
(2) If more than one instrument is written upon the same piece of material, every one of the instruments shall be separately and distinctly stamped with the duty with which it is chargeable.
9.
(1) An instrument containing or relating to several distinct Instruments to be matters shall be separately and distinctly charged, as if it were a separate separately charged in instrument, with duty in respect of each of the matters.
certain cases.
(2) An instrument made for any consideration in respect whereof it is chargeable with ad valorem duty, and also for any further or other valuable consideration or considerations, shall be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the considerations.
10.
(1) All the facts and circumstances affecting the liability Facts and of any instrument to duty, or the amount of the duty with which circumstances any instrument is chargeable, shall be fully and truly set out in the affecting duty instrument; and every person who negligently or with intent to defraud to be set out in the Government- instruments.
10 of 1990, s.
63(a).
(a) executes any instrument in which all those facts and circumstances are not fully and truly set forth; or (b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all those facts and circumstances, shall be guilty of an offence and liable to a ne not exceeding one hundred thousand shillings.
(2) The collector may require any person executing, or any person employed or being concerned in or about the preparation of any instrument, to give evidence on oath, or by statutory declaration, as to the fullness and truth of the facts and circumstances set forth; and for the purpose of taking that evidence the collector may summon any such person to appear before him, and the person so summoned shall be legally bound to appear and to answer such questions and to produce such documents as the collector may put to him or require to be produced relating to those facts and circumstances.
10A.
(1) The Collector of Stamp Duties shall refer to the Valuation by Chief Government Valuer any conveyance or transfer on sale of Government Valuer.
any immovable property before or after registration of the relevant 6 of 1994, s.
51.
instruments in order to determine the true open market value of such property as at the date of the conveyance or transfer for purposes of 12 CAP.
480 Stamp Duty [Rev.
2011 ascertaining whether any additional stamp duty is payable.
(2) The Collector shall immediately demand by written notice to the purchaser or transferee or his authorised agent the payment of any additional stamp duty that may become payable after the valuation has been effected under subsection (1), and such payment shall be made within twenty-one days from the date of posting of the notice.
(3) The Collector shall cause caveats or restrictions, as the case may be, to be registered against the title of any immovable property immediately upon valuation under subsection (1) where additional stamp duty becomes due and payable.
(4) The provisions of this section shall also apply to gifts inter vivos under section 52(1) and to partitions under section 71 (1) and (2).
Mode of calculating 11.
(1) Subject to the provisions of subsection (2), where an ad valorem duty in instrument is chargeable with ad valorem duty in respect of - certain cases.
(a) any money in any currency other than that of Kenya; or (b) any stock or marketable security, the duty shall be calculated on the value, on the day of the date of the instrument, of the money in Kenya currency according to the current rate of exchange, or of the stock or security according to the average price thereof: Provided that where stock or security is the consideration for any conveyance or transfer of property, and, in the opinion of the collector, the consideration is inadequate having regard to the actual value of the stock or security, ad valorem duty shall be chargeable on the value of the property to be conveyed or transferred.
(2) Notwithstanding the provisions of subsection (1), where any instrument other than a bill of exchange or promissory note is charged with an ad valorem duty in respect of any money in any currency other than that of Kenya and a rate of exchange is prescribed by regulations made under this Act for that currency, then the stamp duty on that instrument shall be calculated according to the prescribed rate of exchange.
(3) Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with that statement it shall, so far as regards the subject- matter of the statement, be deemed to be duly stamped, unless or until it is shown that the statement is untrue and that the instrument is in fact insufciently stamped.
Rev.
2011] Stamp Duty CAP.
480 13 12.
Every instrument chargeable with duty shall be written in Instruments to be in the English language, or shall have annexed thereto a full and accurate English.
translation thereof into the English language, certied to the satisfaction of the collector.
Use of Adhesive Stamps 13.
(1) Where stamp duty is required or permitted by any written General directions law to be denoted by an adhesive stamp, the stamp shall be cancelled as to cancellation of in such manner as to render it incapable of being used again for any adhesive stamps.
revenue purpose.
10 of 1990, s.
63(b).
(2) When two or more adhesive stamps are used to denote the stamp duty upon an instrument, each stamp shall be so cancelled.
(3) Where an instrument, the stamp duty on which is required or permitted by any written law to be denoted by an adhesive stamp, is to be stamped before execution, or before issue, or before being parted with by the maker, or before the doing of any other act, the rst person executing, or the person issuing, or the maker, or the person doing such other act, as the case may be, shall cancel the adhesive stamp before execution, or before issuing, or before parting with the instrument, or before doing that other act, as the case may be.
(4) Where an instrument, the stamp duty on which is required or permitted by any written law to be denoted by an adhesive stamp, is to be stamped within a certain period after any event, the person afxing the adhesive stamp shall cancel it forthwith and before he parts with the instrument.
(5) Subject to the provisions of sections 20, 21, 34 and 36, an instrument, the stamp duty on which is denoted by an adhesive stamp, shall not be deemed to have been duly stamped unless the stamp has been cancelled as required by this section.
(6) The person required by the foregoing provisions of this section to cancel an adhesive stamp shall cancel it by writing on or across the stamp his name or initials or the name or initials of his rm with the true date of his so writing.
(7) Any person who neglects or refuses duly and effectively to cancel an adhesive stamp in accordance with the provisions of this section shall be guilty of an offence and liable to a ne not exceeding ve thousand shillings.
14.
Any person who by any writing in any manner defaces an Defacement of adhesive stamps.
14 CAP.
480 Stamp Duty [Rev.
2011 10 of 1990, s.
63(c).
adhesive stamp before it is used for the purpose of denoting stamp duty shall be guilty of an offence and liable to a ne not exceeding two thousand shillings: Provided that any person may, with the express sanction of the Senior Collector of Stamp Duties and in conformity with the conditions which may be prescribed, write upon or otherwise appropriate an adhesive stamp before it is used for the purpose of identication thereof.
Penalty for frauds in 15.
If any person - relation to adhesive stamps.
(a) fraudulently removes or causes to be removed from any 10 of 1990, s.
63(d).
instrument any adhesive stamp, or afxes to any other instrument or uses for any other purpose any adhesive stamp which has been so removed with intent that the stamp may be used again; or (b) sells, or offers for sale, or utters, any adhesive stamp which has been so removed, or utters any instrument, having thereon any adhesive stamp which has to his knowledge been so removed, he shall be guilty of an offence and liable, in addition to any other ne or penalty to which he may be liable, to a ne not exceeding twenty thousand shillings.
Denoting Stamps Denoting stamps.
16.
Where the duty with which an instrument is chargeable depends in any manner upon the duty paid upon another instrument, the payment of the last-mentioned duty shall, upon application to a collector and production of both the instruments, be denoted upon the rst-mentioned instrument in such manner as may be prescribed.
Adjudication Stamps Adjudication.
17.
(1) Subject to any regulations made under this Act, a collector may be required by any person, on payment by that person of a fee of one hundred shillings, to express his opinion with reference to any executed instrument upon the following questions - (a) whether it is chargeable with any duty; (b) with what amount of duty it is chargeable.
Rev.
2011] Stamp Duty CAP.
480 15 (2) The collector may require to be furnished with an abstract of the instrument, and also with such evidence as he may deem necessary in order to show to his satisfaction whether all the facts and circumstances affecting the liability of the instrument to duty, or the amount of duty chargeable thereon, are fully and truly set forth therein.
(3) If the collector is of the opinion that the instrument is not chargeable with any duty it shall be stamped with a particular stamp denoting that it is not chargeable with any duty.
(4) If the collector is of the opinion that the instrument is chargeable with duty he shall assess the duty with which it is in his opinion chargeable, and when the instrument is stamped in accordance with the assessment it shall be stamped with a particular stamp denoting that it is duly stamped.
(5) Every instrument stamped with the particular stamp, denoting either that it is not chargeable with any duty or that it is duly stamped, shall be admissible in evidence and available for all purposes notwithstanding any objection relating to duty.
(6) An instrument upon which the duty has been assessed by the collector shall not, if it is unstamped or insufciently stamped, be stamped otherwise than in accordance with the assessment.
(7) Nothing in this section shall extend to any instrument chargeable with ad valorem duty, and made as a security for money or stock without limit; or shall authorize the stamping after the execution thereof of any instrument which by law cannot be stamped after execution.
(8) A statutory declaration made for the purpose of this section shall not be used against any person making it in any proceedings whatever, except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and, if the declaration is true, every person by whom it is made shall, on payment of the duty chargeable upon the instrument to which it relates, be relieved from any ne or disability to which he may be liable by reason of the omission to state truly in the instrument any fact or circumstance required by this Act to be stated therein.
18.
(1) Any person who is dissatised with the assessment of the Persons dissatised collector may, within thirty days after the date of the assessment, and on may appeal.
payment of duty in conformity therewith, or on securing the duty to the 10 of 1981, Sch., satisfaction of the collector, appeal against the assessment to the High 13 of 1995, s.
93.
Court, and may for that purpose require the Collector to state and sign a case, setting out the question upon which his opinion was required, 16 CAP.
480 Stamp Duty [Rev.
2011 and the assessment made by him.
(2) A sum of ve thousand shillings shall be lodged with the collector as security for the costs referred to in subsection (6).
(3) The collector shall thereupon state and sign a case and deliver it to the person by whom it is required, and the case may, within seven days thereafter, and after service thereof upon the Attorney-General, be set down by that person for hearing.
(4) Upon the hearing of the case the court shall determine the question submitted, and, if the instrument in question is in the opinion of the court chargeable with any duty, shall assess the duty with which it is chargeable.
(5) If it is decided by the court that the assessment of the collector is erroneous, any excess of duty which may have been paid in conformity with the erroneous assessment, together with any ne or penalty which may have been paid in consequence thereof, shall be ordered by the court to be repaid to the appellant, with or without costs as the court may determine.
(6) If the assessment of the collector is conrmed wholly or in part, the court may make an order for payment to the collector of the costs incurred by him in relation to the appeal.
Production of Instruments in Evidence and Instruments not duly Stamped Non-admissibility 19.
(1) Subject to the provisions of subsection (3) of this section of unstamped and to the provisions of sections 20 and 21, no instrument chargeable instruments in with stamp duty shall be received in evidence in any proceedings evidence; and whatsoever, except - penalty.
(a) in criminal proceedings; and (b) in civil proceedings by a collector to recover stamp duty, unless it is duly stamped.
(2) No instrument chargeable with stamp duty shall be led, enrolled, registered or acted upon by any person unless it is duly stamped.
(3) Upon the production to any court (other than a criminal court), arbitrator, referee, company or other corporation, or to any ofcer or servant of any public body, of any instrument which is chargeable with Rev.
2011] Stamp Duty CAP.
480 17 stamp duty and which is not duly stamped, the court, arbitrator, referee, company or other corporation, or ofcer or servant, shall take notice of the omission or insufciency of the stamp on the instrument and thereupon take action in accordance with the following provisions - (a) if the period of time within or before which the instrument should have been stamped has expired and the instrument is one in respect of which a person is specied in the Schedule to this Act as being liable for the stamping thereof, the instrument shall be impounded and, unless the instrument has been produced to a collector, shall forthwith be forwarded to a collector; (b) in any such case, before the exclusion or rejection of the instrument, the person tendering it shall, if he desires, be given a reasonable opportunity of applying to a collector for leave under section 20 or of obtaining a certicate under section 21; (c) in all other cases, unless otherwise expressly provided in this Act, the instrument shall, saving all just exceptions on other grounds, be received in evidence upon payment to the court, arbitrator or referee of the amount of the unpaid duty and of the penalty specied in subsection (5), and the duty and penalty, if any, shall forthwith be remitted to a collector with the instrument to be stamped after the instrument has been admitted in evidence.
(4) If any person is empowered or required by any written law to act upon, le, enrol or register a duplicate or copy of any instrument, and if the original of that instrument would require to be duly stamped if acted upon, led, enrolled or registered by that person, that person may call for the production of the original instrument or for evidence to his satisfaction that it was duly stamped, and no person shall act upon, le, enrol or register any such duplicate or copy without production of the original instrument duly stamped or of evidence thereof.
(5) The penalty on stamping any instrument out of time referred to in paragraph (c) of subsection (3) shall be ten shillings in respect of every twenty shillings and of any fractional part of twenty shillings of the duty chargeable thereon and in respect of every period of three months or any part of such a period after the expiration of the time within or before which the instrument should have been stamped.
20.
(1) Where an instrument is chargeable with stamp duty Stamping out of time.
under this Act and should have been stamped before a certain event or 5 of 1960, s.
4, before the expiration of a certain period, but has not been so stamped, 6 of 1994, s.
52, a collector may give leave for the stamping of the instrument if he is 18 CAP.
480 Stamp Duty [Rev.
2011 10 of 2010, s.
42.
satised - (a) that the omission or neglect to stamp duly did not arise from any intention to evade payment of stamp duty or otherwise to defraud; and (b) that the circumstances of the case are such as to justify leave being given.
(2) If the collector grants leave under subsection (1) for the stamping of an instrument, the instrument shall be stamped on payment of the unpaid duty including any additional stamp duty and of a penalty of one shilling in respect of every twenty shillings and of any fractional part of twenty shillings of the duty chargeable thereon and in respect of every period of three months or any part of such period after the expiration of the time within or before which the instrument should have been stamped: Provided that (a) the penalty chargeable under this subsection shall not exceed one hundred per centum of the principal duty outstanding; and (b) the collector may remit the penalty under this section up to a maximum of one million ve hundred shillings, but shall not remit any penalty exceeding that amount without prior approval from the Minister.
(3) If any person applying for leave under this section is dissatised with the decision of the collector upon that application, that person may require his application to be referred to the Minister, whose decision thereon shall be final for all purposes.
(4) Upon any application for leave under this section, the collector, or the Minister, may require sworn or other evidence in support of the application.
(5) When an instrument has been stamped by leave under this section it shall be deemed to have been duly stamped.
(6) Notwithstanding the provisions of this section, no bill of exchange or promissory note shall, except as provided in sections 21, 22, 34 and 36, be stamped after execution.
(7) In this section, collector does not include the Senior Collector of Stamp Duties.
Rev.
2011] Stamp Duty CAP.
480 19 21.
Subject to the provisions of this Act, where an instrument Certain improperly stamped instruments.
bears a stamp of sufcient amount but of improper description, it may, on payment of the duty with which it is chargeable and of a penalty of ten shillings, be certied to be duly stamped, and any instrument so certied shall then be deemed to have been duly stamped.
22.
Notwithstanding any written law to the contrary, a bill of Effect of non- exchange which is presented for acceptance, or accepted, or payable, compliance in case outside Kenya, or a cheque, whether presented for acceptance, or of certain bills of accepted, or payable, outside or inside Kenya, shall not be invalid by exchange.
reason only that it is not stamped in accordance with the provisions of this Act, and any such bill of exchange or cheque which is unstamped or not properly stamped may be received in evidence on payment of the proper duty and penalties as provided by sections 19 and 20.
23.
Every instrument executed out of Kenya by any person, not Instruments executed being a bill of exchange or a promissory note, shall, before being used, out of Kenya.
brought into force or registered, within Kenya, be stamped according 5 of 1960, s.
5.
to the rate of duty chargeable thereon in accordance with this Act, whatever the provision of the Schedule may be with regard to the time before which or the period within which such an instrument, if executed in the rst instance within Kenya, should be stamped.
Miscellaneous 24.
If the Senior Collector of Stamp Duties is satised that an Refund where instrument has been erroneously assessed with duty or penalty, he may, instrument if application for a refund is made at any time within one year after the erroneously assessed.
date of the payment of that duty or penalty, refund the amount thereof to the person by whom it was paid.
25.
(1) Where any minimum amount is prescribed below Splitting.
which stamp duty shall not be payable, no person shall execute more instruments than would ordinarily be necessary for the transaction in question in order to evade stamp duty.
(2) Where a scale is prescribed under which the rate of stamp duty is increased after passing certain limits, no person shall execute more instruments than would ordinarily be necessary for the transaction in question in order to evade stamp duty.
(3) In any question arising under this section the onus of proof shall lie upon the person who asserts that there has been no splitting in order to evade stamp duty.
26.
Any person executing an instrument in contravention of the Penalty for evasion 20 CAP.
480 Stamp Duty [Rev.
2011 of duty by splitting.
10 of 1990, s.
63(e).
provisions of section 25 shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings.
Instruments reserving 27.
Where interest is expressly made payable by the terms of an interest.
instrument, the instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
Stamp where value 28.
Where the amount or value of the subject-matter of any of subject-matter is instrument chargeable with ad valorem duty cannot be, or (in the case indeterminate.
of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution, or rst execution, nothing shall be claimable under the instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufcient: Provided that if the owner of an instrument which was duly stamped in accordance with the information then available to him receives information showing that the instrument is insufciently stamped, and produces the instrument with the information to a collector within twenty-one days after receipt, the instrument may be stamped without penalty for such further sum as is proper, but this proviso shall not apply to instruments which are required to be stamped before execution.
Recovery of duty and 29.
(1) All duties, penalties and other sums required to be paid penalties.
by way of or in connexion with stamp duty under this Act or any other 6 of 1994, s.
53.
written law may be recovered by a collector as a civil debt recoverable summarily.
(2) In a suit under this section, the production of a certicate signed by the Senior Collector of Stamp Duties giving the name and address of the person concerned and the amount of stamp duty due and payable by him shall be sufcient evidence that the amount of stamp duty is due and payable by that person.
(3) Subject to the provisions of section 18, where stamp duty is recoverable in the manner provided by this section the Senior Collector of Stamp Duties may, instead of suing for the stamp duty, recover it by distress, and for that purpose may by order under his hand authorize an ofcer to execute distress upon the goods and chattels of the person from whom the stamp duty is recoverable and that ofcer may, at the cost of the person from whom the duty is recoverable, employ such servants or agents as he may think necessary to assist him in the execution of the distress: Provided that - Rev.
2011] Stamp Duty CAP.
480 21 (i) where the full amount of the duty due and payable is not recovered by distress, the Senior Collector of Stamp Du- ties may forthwith recover the deciency, in the manner provided by this section; (ii) where the full amount of duty due and payable has been paid after the issue of an order under this section and before the execution of distress, any costs and expenses incurred by the Senior Collector of Stamp Duties prior to the payment of the duty shall be deemed to be a debt due and payable to the Government by the person in respect of whom the order was issued and may be recovered by the Senior Collector of Stamp Duties.
(4) For the purposes of executing distress the person authorized by the Senior Collector of Stamp Duties under the order may, in addition to employing such servants or agents as he may consider necessary, require a police ofcer to be present while the distress is being levied and a police ofcer so required shall comply with that requirement.
(5) A distress levied under this section shall be kept for ten days, either at the premises at which distress was levied or at any other place which the authorized ofcer may consider appropriate, at the cost of the person from whom the duty is recoverable.
(6) If the person from whom duty is recoverable by distress does not pay the duty together with the costs of the distress within the period of ten days, the goods and chattels distrained upon shall be sold by public auction for payment of the duty due and payable and the costs, and the proceeds of the sale shall be applied rst towards the cost of taking, keeping and selling the goods and chattels distrained upon and then towards the duty due and payable and any remainder of those proceeds shall be restored to the owner of the property distrained.
(7) In this section an authorized ofcer means the Collector of Stamp Duties or any other person authorized by the Senior Collector of Stamp Duties to levy distress.
part III - provIsIons applICable to partICular Instruments Agreements 30.
(1) Every instrument under hand only (not being a promissory Certain mortgages note or bill of exchange) given upon the occasion of a deposit of of stock to be chargeable as any share warrant or stock certicate to bearer, or Commonwealth agreements.
or foreign share certicate, or any security for money transferable 22 CAP.
480 Stamp Duty [Rev.
2011 by delivery, by way of security for any loan, shall be deemed to be an agreement, and shall be charged with duty accordingly.
(2) Every instrument under hand only (not being a promissory note or bill of exchange) making redeemable or qualifying a duly stamped transfer intended as a security of any registered stock or marketable security shall be deemed to be an agreement and shall be charged with duty accordingly.
(3) A release or discharge of any such instrument shall be charged with the like duty.
Hire purchase 31.
Any agreement for or relating to the supply of goods on hire, agreement to be whereby the goods in consideration of periodical payments will or may stamped.
become the property of the person to whom they are supplied, shall be charged with duty as an agreement or, if under seal, as a deed, as the case requires, and the exemption numbered (1) under the heading Agreement or any Memorandum of an Agreement in the Schedule shall not apply in the case of any such instrument.
Bills of Exchange and Promissory Notes Meaning of bill of 32.
For the purposes of this Act, bill of exchange includes exchange.
draft, order, cheque and letter of credit, and any other document or writing entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money; and bill of exchange payable on demand includes - (a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen; and (b) an order for the payment of any sum of money weekly, or monthly, or at any other stated periods, and also an order for the payment by any person at any time after the date thereof of any sum of money, and sent or delivered by the person making it to the person by whom the payment is to be made, and not to the person to whom the payment is to be made, or to any person on his behalf.
Meaning of promissory note.
33.
(1) For the purposes of this Act, promissory note includes any document or writing containing a promise to pay any sum of money.
Rev.
2011] Stamp Duty CAP.
480 23 (2) A note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen, shall be deemed a promissory note for that sum of money.
34.
(1) A person into whose hands a bill of exchange or Provisions as to promissory note drawn or made out of Kenya comes into Kenya stamping foreign before it is stamped shall, before he presents for payment, or endorses, bills and notes.
transfers or in any manner negotiates, or pays, the bill or note, afx thereto the proper stamp, and, if an adhesive stamp, cancel it: Provided that - (i) if at the time when the bill or note comes into the hands of a bona de holder there is afxed thereto an adhesive stamp effectually cancelled, the stamp shall, so far as relates to the holder, be deemed to be duly cancelled, although it may not appear to have been afxed or cancelled by the proper person; and (ii) if at the time when the bill or note comes into the hands of a bona de holder there is afxed thereto an adhesive stamp not duly cancelled, the holder may cancel the stamp as if he were the person by whom it was afxed, and upon his so doing the bill or note shall be deemed to be duly stamped, and as valid and available as if the stamp had been cancelled by the person by whom it was afxed.
(2) Nothing contained in subsection (1) shall relieve any person from any ne or penalty to which he may be liable for not cancelling an adhesive stamp.
35.
A bill of exchange or promissory note which purports to be As to bills and notes drawn or made out of Kenya shall, for the purpose of determining the purporting to be mode in which the stamp duty thereon is to be denoted, be deemed to drawn abroad.
have been so drawn or made, although it may in fact have been drawn or made within Kenya.
36.
(1) Every person who issues, endorses, transfers, negotiates, Penalty for issuing, presents for payment or pays a bill of exchange or promissory note etc., any unstamped liable to duty and not being duly stamped shall be guilty of an offence bill or note.
10 of 1990, s.
63(f), and liable to a ne not exceeding ve thousand shillings; and the 8 of 1985, s.
21(a), person who takes or receives from any other person any such bill or 6 of 1994, s.
54.
note either in payment or as a security, or by purchase or otherwise, shall not be entitled to recover thereon or to make it available for any purpose whatever: 24 CAP.
480 Stamp Duty [Rev.
2011 Provided that if any bill of exchange payable on demand or at sight, or on presentation, or within three days after date or sight, is presented for payment unstamped the person to whom it is presented may afx thereto an adhesive stamp of two shillings and fty cents, and cancel it as if he had been the drawer of the bill, and may thereupon pay the sum mentioned in the bill and charge the duty in account against the person by whom the bill was drawn, or deduct the duty from that sum, and the bill shall, so far as respects the duty, be deemed valid and available.
(2) Nothing contained in subsection (1) shall relieve any person from any ne or penalty incurred by him in relation to that bill.
One bill only of a set 37.
Where a bill of exchange is drawn in a set according to the need be stamped.
custom of merchants, and one of the set is duly stamped, the other or others of the set shall, unless issued or in some manner negotiated apart from the stamped bill, be exempt from duty; and, upon proof of the loss or destruction of a duly stamped bill forming one of the set, any other bill of the set which has not been issued or in any manner negotiated apart from the lost or destroyed bill may, although unstamped, be admitted in evidence to prove the contents of the lost or destroyed bill.
Chattels Transfers Chattels transfers.
38.
No instrument shall be registered under the Chattels Transfer Cap.
28.
Act unless the original, duly stamped, is produced to the Registrar.
Companies Charge of duty on 39.
A statement of the amount which is to form the nominal share capital of companies.
capital of any company to be registered with limited liability shall be delivered to the Registrar of Companies and a statement of the amount of any increase of registered capital of a company now registered or to be registered with limited liability shall be delivered to the Registrar, and every such statement shall be charged with an ad valorem stamp duty.
Contract Notes Provision as to 40.
(1) For the purposes of this Act, contract note means the contract notes.
note sent by a broker or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal.
Rev.
2011] Stamp Duty CAP.
480 25 (2) Where a contract note is a continuation or carrying over note made for the purpose of continuing or carrying over any transaction for the sale or purchase of stock or marketable securities, the contract note, although it is made in respect of both the sale and purchase, shall be charged with duty under this section as if it related to one of those transactions only, and, if different rates of duty are chargeable in respect of those transactions, to that one of those transactions which would render the contract note chargeable at the highest rate.
(3) Where a contract note advises the sale or purchase of more than one description of stock or marketable security, the note shall be deemed to be as many contract notes as there are descriptions of stocks or securities sold or purchased.
41.
(1) Any person who effects any sale or purchase of any stock Obligation to execute or marketable security as a broker or agent, and any person who by contract notes.
way of business deals, or holds himself out as dealing, as a principal 10 of 1990, s.
63(g).
in any stock or marketable security and buys or sells any such stock or marketable security shall forthwith make and execute a contract note and transmit the note to his principal or to the vendor or purchaser of the stock or marketable security, as the case may be, and in default of so doing shall be guilty of an offence and liable to a ne not exceeding ten thousand shillings.
(2) If any person makes or executes any contract note chargeable with duty and not being duly stamped, he shall be guilty of an offence and liable to a ne not exceeding one thousand shillings.
(3) No broker, agent or other person shall have a legal claim to any charge for brokerage, commission or agency with reference to the sale or purchase of any stock or marketable security if he fails to comply with the provisions of this section.
(4) Stamp duty on a contract note may be added to the charge for brokerage or agency, and may be recoverable as part of that charge.
42.
(1) The provisions of this Act as to contract notes shall apply Extension of to any contract under which an option is given or taken to purchase or provisions as to sell any stock or marketable security at a future time at a certain price, contract notes to sale or purchase of as it applies to the sale or purchase of any stock or marketable security, options.
but the duty on such a contract shall be one-half only of that chargeable on a contract note: Provided that, if under the contract a double option is given or taken, the contract shall be deemed to be a separate contract in respect of each option.
26 CAP.
480 Stamp Duty [Rev.
2011 (2) Any contract note made or executed in pursuance and in consequence of the exercise of an option given or taken under a contract duly stamped in accordance with the provisions of this section shall be charged with one-half only of the duty which would otherwise have been chargeable thereon under this Act, provided it bears on its face a certicate by the broker, agent or other person mentioned in section 41 to the effect that it is made or executed in the exercise of an option for which a duly stamped contract has been rendered on the date mentioned in the certicate.
Conveyances on Sale Meaning of 43.
(1) For the purposes of this Act, conveyance on sale conveyance on includes - sale.
(a) an instrument, and a decree or order of a court, whereby any property, or any estate or interest in property, upon the sale thereof is transferred to or vested in a purchaser, or any other person on his behalf or by his direction; (b) a decree or order for, or having the effect of an order for, foreclosure: Provided that - (i) the ad valorem duty upon any such decree or order shall not exceed the duty on a sum equal to the value of the property to which the decree or order relates, and where the decree or order states that value that statement shall be conclusive for the purpose of determining the amount of duty; and (ii) where ad valorem duty is paid upon the decree or order any conveyance following upon the decree or order shall be exempt from ad valorem duty.
(2) Any vesting order by the court shall bear the same stamp as if it were a conveyance on sale.
How ad valorem duty 44.
(1) Where the consideration, or any part of the consideration, is to be calculated in for a conveyance on sale consists of any stock or marketable security, respect of stock and the conveyance shall be charged with ad valorem duty in respect of the securities.
value of the stock or security.
(2) Where the consideration, or any part of the consideration, for a conveyance on sale consists of any security not being a marketable Rev.
2011] Stamp Duty CAP.
480 27 security, the conveyance shall be charged with ad valorem duty in respect of the amount due on the day of the date thereof for principal and interest upon the security.
45.
(1) Where the consideration, or any part of the consideration, How consideration for a conveyance on sale consists of money payable periodically for consisting of periodical payments a denite period not exceeding twenty years, so that the total amount to be charged.
to be paid can be previously ascertained, the conveyance shall be 8 of 1985, s.
21(b), charged in respect of that consideration with ad valorem duty on the 6 of 1994, s.
55.
total amount.
(2) Where the consideration, or any part of the consideration, for a conveyance on sale consists of money payable periodically for a denite period exceeding twenty years or in perpetuity, or for any indenite period not terminable with life, the conveyance shall be charged in respect of that consideration with ad valorem duty on the total amount which will or may according to the terms of sale be payable during the period of twenty years next after the day of the date of the instrument.
(3) Where the consideration or part of the consideration for a conveyance on sale consists of money payable periodically during any life or lives, the conveyance shall be charged in respect of that consideration with ad valorem duty on the amount which will or may, according to the terms of sale, be payable during the period of twelve years next after the day of the date of the instrument.
(4) Notwithstanding the foregoing provisions of this section, no conveyance on sale chargeable with ad valorem duty in respect of any periodical payments and containing also provision for securing the payments shall be charged with any duty in respect of that provision, and no separate instrument made in that case for securing repayment shall be charged with any higher duty than one hundred shillings.
46.
A conveyance on sale made for any consideration in Conveyance on respect whereof it is chargeable with ad valorem duty, and in further sale with further consideration of a covenant by the purchaser to make, or of his having covenant.
previously made, any substantial improvement of or addition to the property conveyed to him, or of any covenant relating to the subject- matter of the conveyance, shall not be chargeable, and shall be deemed not to have been chargeable, with any duty in respect of such further consideration.
47.
Where any property is conveyed to any person in consideration, How conveyance wholly or in part, of any debt due to him, or subject either certainly or in consideration of contingently to the payment or transfer of any money or stock, whether a debt, etc., to be charged.
28 CAP.
480 Stamp Duty [Rev.
2011 being or constituting a charge or encumbrance or not, the debt, money or stock shall be deemed to be the whole or part, as the case may be, of the consideration in respect whereof the conveyance is chargeable with ad valorem duty.
Direction as to duty 48.
(1) Where property contracted to be sold for one consideration in certain cases for the whole is conveyed to the purchaser in separate parts or parcels of conveyances, by different instruments, the consideration shall be apportioned in such mortgages and settlements.
manner as the parties think t, so that a distinct consideration for each 8 of 1985, s.
21(c), separate part or parcel is set out in the conveyance relating thereto, and 10 of 1990, s.
63(h).
that conveyance shall be charged with ad valorem duty in respect of the distinct consideration.
(2) Where property contracted to be purchased for one consideration for the whole by two or more persons jointly or by any person for himself or others or wholly for others is conveyed in parts or parcels by separate instruments to the persons by or for whom it was purchased for distinct parts of the consideration, the conveyance of each separate part or parcel shall be charged with ad valorem duty in respect of the distinct part of the consideration therein specied.
(3) Where there are several instruments employed for completing any conveyance, mortgage or settlement, the principal instrument only shall be charged with ad valorem duty and each of the other instruments shall be chargeable with a duty of ve shillings instead of the duty (if any) prescribed for it in the Schedule.
(4) (a) Where any property is conveyed by one person to another by the direction, or at the request, or with the consent, of an intermediary or intermediaries, the conveyance shall be charged with duty as if it were both a conveyance of the property by the transferor to the intermediary or, as the case may be, to the rst intermediary, and also a number of conveyances whereby each intermediary conveys the property to the next intermediary or, in the nal case, to the transferee.
(b) Every conveyance to which this subsection refers shall recite the fact of each such direction, request or consent; and, if the instrument is executed without that recital, every person executing it knowing that it does not contain that recital (which knowledge shall be presumed unless the contrary is proved) shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings.
(c) In this subsection, intermediary means a person, other than the transferee, who since the commencement of this Act acquired the right to call for a conveyance of any property under an agreement for sale, trust or otherwise howsoever, and includes two or more such persons acting jointly.
Rev.
2011] Stamp Duty CAP.
480 29 49.
(1) Any agreement or memorandum of an agreement for the Certain contracts sale of any estate or interest in any property (except lands, tenements to be chargeable as or hereditaments, or property locally situated out of Kenya, or goods, conveyances on sale.
wares or merchandise, or shares, or marketable securities, or any ship 8 of 1985, s.
21(d), or vessel, or part interest, share or property of or in any ship or vessel) 6 of 1994, 56.
shall be charged with the same ad valorem duty as if it were an actual conveyance, assignment or transfer on sale of the estate, interest or property agreed to be sold.
(2) Where ad valorem duty has been paid under subsection (1) and the purchaser, before having obtained a conveyance, assignment or transfer of the property, enters into an agreement for the sale of the property, the agreement shall be charged, if the consideration for the sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of the excess consideration, and in any other case with the xed duty of one thousand shillings or of one hundred shillings, as the case may require.
(3) Where duty has been duly paid in conformity with the foregoing provisions of this section, the conveyance, assignment or transfer made to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, shall not be chargeable with any duty, and the Collector upon application shall denote the payment of the ad valorem duty upon the conveyance, assignment or transfer.
(4) Where any such agreement is stamped with the xed duty of one hundred shillings, the agreement shall be regarded as duly stamped for the mere purpose of proceedings to enforce specic performance or recover damages for the breach thereof.
(5) Where any such agreement is stamped with xed duty, and a conveyance, assignment or transfer made in conformity with the agreement is presented to the collector for stamping with the ad valorem duty chargeable thereon within the period of six months after the rst execution of the agreement or within such longer period as the collector may think reasonable in the circumstances of the case, the conveyance, assignment or transfer shall be stamped accordingly and both it and the agreement shall be deemed to be duly stamped; but nothing in this subsection shall alter or affect the provisions as to the stamping of a conveyance, assignment or transfer after the execution thereof.
(6) The ad valorem duty paid upon any such agreement shall be returned by the collector in case the agreement be afterwards rescinded or annulled in writing.
50.
(1) Where upon the sale of any annuity or other right not As to sale of an before in existence the annuity or other right is not created by actual annuity or right not grant or conveyance, but is only secured by bond, warrant of attorney, 30 CAP.
480 Stamp Duty [Rev.
2011 before in existence.
covenant, contract or otherwise, the bond or other instrument, or some one of the instruments if there are more than one, shall be charged with the same duty as an actual grant or conveyance and shall for the purposes of this Act be deemed to be an instrument of conveyance on sale.
(2) Notwithstanding the provisions of subsection (1), an instrument being a grant or contract for payment of a purchased life annuity shall be chargeable with stamp duty under paragraph (3) of the heading Bond, Covenant or Instrument of any kind whatsoever in the Schedule, whether or not the annuity is a superannuation annuity as dened in that paragraph.
(3) In this section, purchased life annuity means a life annuity granted for consideration in money or moneys worth in the ordinary course of a business of granting annuities on human life.
Principal instrument 51.
The parties may determine for themselves which of several how to be ascertained.
instruments shall be deemed to be the principal instrument and may pay the ad valorem duty thereon accordingly: Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of those instruments.
Duty on gifts inter 52.
(1) Any conveyance or transfer operating as a voluntary vivos.
disposition inter vivos shall be chargeable with stamp duty as if it were a conveyance or transfer on sale, with the substitution in each case of the value of the property conveyed or transferred for the amount or value of the consideration for the sale.
(2) Notwithstanding the provisions of subsection (1), a conveyance or transfer, or an agreement for a conveyance or transfer, operating as a voluntary disposition of property shall not be chargeable with any duty, if the conveyance or transfer is in favour of - (a) any body of persons incorporated by special Act and that body is by its Act precluded from dividing any prot amongst its members and the property conveyed is to be held for the purposes of an open space or for the purposes of its preservation for the benet of Kenya; or (b) any body of persons established for charitable purposes only or the trustees of a trust so established.
(3) Notwithstanding anything contained in section 17, a Collector shall be required without fee to express his opinion under that section Rev.
2011] Stamp Duty CAP.
480 31 on any conveyance, transfer or agreement mentioned in the foregoing provisions of this section, and no such conveyance, transfer or agreement shall be deemed to be duly stamped unless the Collector has expressed his opinion thereon in accordance with that section and the instrument has been stamped accordingly.
(4) Where any instrument is chargeable with duty both as a conveyance or transfer under this section and as a settlement under the heading Settlement in the Schedule, the instrument shall be charged with duty as a conveyance or transfer under this section and not as a settlement.
(5) Any conveyance or transfer (not being a disposition made in favour of a purchaser or encumbrancer or other person in good faith and for valuable consideration) shall, for the purposes of this section, be deemed to be a conveyance or transfer operating as a voluntary disposition inter vivos, and (except where marriage is the consideration) the consideration for any conveyance or transfer shall not for this purpose be deemed to be valuable consideration where a collector is of opinion that by reason of the inadequacy of the sum paid as consideration or other circumstances the conveyance or transfer confers a substantial benet on the person to whom the property is conveyed or transferred.
(6) The foregoing provisions of this section shall not apply to a conveyance or transfer made for a nominal consideration for the purpose of securing the repayment of an advance or loan or made for effectuating the appointment of a new trustee or the retirement of a trustee, whether the trust is expressed or implied, or under which no benecial interest passes in the property conveyed or transferred, or made to a beneciary by a trustee or other person in a duciary capacity under any trust, whether express or implied, and this subsection shall have effect notwithstanding that circumstances exempting the conveyance or transfer from charge under this section are not set forth in the conveyance or transfer.
Conveyances on any Occasion except Sale or Transfer 53.
Every instrument, and every decree or order of any court, What is to be deemed whereby any property on any occasion, except a sale or mortgage, is a conveyance on any transferred to or vested in any person, shall be charged with duty as a occasion not being a conveyance or transfer of property: sale or mortgage.
8 of 1985, s.
21(e), Provided that a conveyance or transfer made for effectuating the 6 of 1994, s.
57.
appointment of a new trustee, or for effectuating the retirement of a trustee although no new trustee is appointed, shall not be charged with any higher duty than two hundred shillings.
32 CAP.
480 Stamp Duty [Rev.
2011 Duplicates and Counterparts Provision as to 54.
The duplicate or counterpart of an instrument chargeable duplicates and with duty shall not be deemed to be duly stamped unless it is stamped counterparts.
as an original instrument, or unless it appears by some stamp impressed thereon that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart.
Agreements to be Leases and Licences charged as leases.
55.
(1) An agreement for a lease, or in respect of any letting, shall 8 of 1985, s.
21(f).
be charged with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement.
(2) A lease made subsequently to, and in conformity with, such an agreement duly stamped shall be charged with the duty of ve shillings only.
Duty on leases where consideration 56.
Every lease shall, so far as the consideration therefor consists consists of rent.
of rent, whether reserved as a yearly rent or otherwise, be charged with duty in accordance with the heading Lease in the Schedule.
Duty on leases in 57.
A lease shall, so far as the consideration therefor consists of other cases.
any premium or other consideration whatsoever other than rent, moving either to the lessor or to any other person, be charged with ad valorem stamp duty computed on that consideration as if it were a conveyance on sale for the amount of that consideration.
Duty on leases 58.
A lease granted in perpetuity shall be charged with ad valorem granted in perpetuity.
stamp duty as if it were a conveyance on sale, and the duty shall be computed on the value of the property.
Leases, how to be 59.
(1) Where the consideration, or any part of the consideration, charged in respect of for which a lease is granted or agreed to be granted, consists of any produce, etc.
produce or other goods, the value of the produce or goods shall be deemed a consideration in respect of which the lease or agreement is chargeable with ad valorem duty.
(2) Where it is stipulated that the value of the produce or goods is to amount at least to, or is not to exceed, a given sum, or where the lessee is specially charged with or has the option of paying after any permanent rate of conversion, the value of the produce or goods shall, for the purpose of assessing the ad valorem duty, be estimated at the given sum, or according to the permanent rate.
(3) A lease or an agreement for a lease made either wholly or partially for any such consideration, if it contains a statement of the Rev.
2011] Stamp Duty CAP.
480 33 value thereof, and is stamped in accordance with the statement, shall, so far as regards the subject-matter of the statement, be deemed to be duly stamped, unless or until it is otherwise shown that the statement is incorrect, and that the lease or agreement is in fact not duly stamped.
Directions as to 60.
(1) An instrument, whereby the rent reserved by any other duty on instruments instrument chargeable with duty and duly stamped as a lease is increasing rent and increased, shall not be charged with duty otherwise than as a lease in on certain leases.
consideration of the additional rent thereby made payable.
8 of 1985, s.
21(g).
(2) If, in accordance with the articles of association of any company, or in pursuance of any agreement with any company, a shareholder in that company is entitled to a lease from the company, then - (a) where such a lease is granted to the rst holder of the shares, the consideration paid to the company for the shares shall be deemed to be a premium in respect of the lease, and the lease shall be chargeable with ad valorem duty accordingly; (b) where such a lease is granted to a subsequent holder of the shares, the consideration paid by the holder for the shares shall be deemed to be a premium paid in respect of the lease notwithstanding that no consideration may have been paid to the company, and the lease shall be chargeable with ad valorem duty accordingly, but, where the lease has been so charged, the duty on the share transfer shall be charged at the rate of ve shillings only, and, if ad valorem duty has already been paid thereon in an amount exceeding ve shillings, allowance shall be made for the excess; (c) where such a lease is assigned to a holder or transferee of shares, the consideration paid by the holder or transferee for the shares shall be deemed to be consideration for the assignment of the lease, and the assignment shall be chargeable with ad valorem duty accordingly, but, where the assignment has been so charged, the duty on the share transfer shall be charged at the rate of ve shillings only, and, if ad valorem duty has already been paid thereon in an amount exceeding ve shillings, allowance shall be made for the excess; (d) for the purposes of paragraphs (b) and (c), consideration includes the value of any shares comprised in a transfer operating, for the purposes of section 52, as a voluntary disposition inter vivos.
34 CAP.
480 Stamp Duty [Rev.
2011 Duty on leases 61.
A lease granted for a consideration which in the opinion of the granted for Collector is inadequate, unless it is a lease granted by the Government, inadequate shall, in respect of the consideration therefor, be charged in accordance consideration.
with the foregoing provisions; and such a lease shall also be charged 21 of 1966, Sch.
as if it were an instrument operating as a voluntary disposition inter vivos in respect of the value of the leasehold interest after deducting the amount of the consideration.
Duty where 62.
Where, in the opinion of the Collector, the amount of consideration cannot be xed with the consideration for a lease cannot be ascertained with reasonable accuracy.
accuracy, he may either disregard that consideration to the extent to 6 of 1994, s.
58, which its amount is deemed to be unascertainable and stamp the lease 8 of 1985, s.
21(h).
as if it were a voluntary disposition inter vivos in accordance with the provisions of section 52, or he may assess the lease with a xed duty of one thousand shillings in respect of the consideration so far as it is deemed to be unascertainable.
Licences.
63.
(1) Every licence relating to immovable property shall for the purposes of this Act be deemed to be a lease by the grantor of the licence to the grantee, and shall be charged with duty accordingly.
(2) In the application to licences of the provisions of this Act with respect to leases, every consideration which would have been rent if the licence had been a lease shall be deemed to be rent, and duty shall be charged accordingly.
Marketable Securities Meaning of 64.
Marketable securities for the purpose of the charge of marketable securities duty thereon, whether or not transferable by delivery, include - for charge of duty and foreign and (a) a marketable security made or issued by or on behalf of Commonwealth share any company or body of persons corporate or unincorporate certicate.
formed or established in Kenya; and (b) a marketable security by or on behalf of any foreign State or government, or Commonwealth or foreign municipal body, corporation or company (hereinafter called a foreign security) - (i) which is made or issued in Kenya; or (ii) which, though originally issued out of Kenya, is offered for subscription, and is given or delivered to a subscriber in Kenya; or (iii) which is assigned, transferred or in any other manner Rev.
2011] Stamp Duty CAP.
480 35 negotiated in Kenya; and (c) a marketable security by or on behalf of the government of any country in the Commonwealth which, if the borrower were a foreign government, would be a foreign security (hereinafter called a Commonwealth government security); and (d) a share warrant or stock certicate to bearer, or any other instrument to bearer, by means of which any share or stock of any company or body of persons formed or established out of Kenya is assigned, transferred or in any manner registered in Kenya.
65.
Every person who in Kenya makes, issues, assigns, Penalty on issuing, transfers, negotiates or offers for subscription any foreign security or etc., security not duly Commonwealth government security, not being duly stamped, shall stamped.
10 of 1990, s.
63(i).
be guilty of an offence and liable to a ne not exceeding ve thousand shillings.
66.
A collector may at any time, without reference to the date Foreign or thereof, allow a foreign security or Commonwealth government Commonwealth security to be stamped without the payment of any penalty, upon being securities may be stamped without satised, in any manner that he may think proper, that it was not made penalty.
or issued, and has not been transferred, assigned or negotiated, within Kenya.
67.
An instrument used for the purpose of assigning, transferring Meaning of or in any manner negotiating the right to any marketable security, share marketable security transferable on or stock shall, if the delivery thereof is by usage treated as sufcient for delivery and the purpose of a sale on the market, whether that delivery constitutes instrument to bearer.
a legal assignment, transfer or negotiation or not, be deemed to be a marketable security transferable on delivery, or an instrument to bearer, as the case may be, and the delivery thereof an assignment, transfer or negotiation.
Mortgages, etc.
68.
(1) For the purposes of this Act, mortgage means a legal Meaning of mortgage and charge or security by way of mortgage for the payment of any denite equitable mortgage or certain sum of money advanced or lent at the time, or previously and provisions in due and owing or foreborne to be paid, being payable, or for the relation to equitable repayment of money to be thereafter lent, advanced or paid, or which mortgages.
may become due upon an account current, together with any sum already advanced or due, or without, as the case may be; and includes - (a) a conditional surrender by way of mortgage, charge, further charge or disposition; and 36 CAP.
480 Stamp Duty [Rev.
2011 (b) any conveyance of any property in trust to be sold or otherwise converted into money intended only as a security, and redeemable before the sale or other disposal thereof, either by express stipulation or otherwise; and (c) any instrument in writing for defeating or making redeemable or explaining or qualifying any conveyance, transfer, disposition or assignation of any immovable property, apparently absolute, but intended only as a security; and (d) any agreement (other than an agreement chargeable with duty as an equitable mortgage), contract or bond accompanied with a deposit of title deeds or with other instruments evidencing a right to property, for making a mortgage, or any other security or conveyance as aforesaid of any property comprised in the title deed, or for pledging or charging the same as a security; and (e) any deed operating as a mortgage of any stock or marketable security; but does not include an instrument registrable under the Chattels Cap.
28.
Transfer Act.
(2) For the purpose of this Act equitable mortgage means an agreement or memorandum relating to the deposit of any title deeds or instruments constituting or being evidence of the title to any property (other than any stock or marketable security) or creating a charge on the property.
(3) (a) There shall be embodied in every equitable mortgage a certicate setting forth the amount secured thereby, or, if such be the case, that the amount secured is uncertain.
(b) In the case of an equitable mortgage to which the provisions of subsection (2) of section 70 apply, where any advance of loan is made in excess of the amount covered by the ad valorem duty impressed thereon, there shall be presented with or endorsed on the equitable mortgage, when it is presented for stamping, a certicate setting forth the amount of the advance or loan so made.
(c) There shall be embodied in every discharge of an equitable mortgage a certicate setting forth the greatest amount which was at any time secured by the mortgage.
(d) Nothing shall be claimable under any equitable mortgage Rev.
2011] Stamp Duty CAP.
480 37 more than the highest amount for which the stamp actually used would, at the date of the stamping thereof, have been sufcient.
69.
(1) A security for the transfer or retransfer of any stock shall Direction as to duty be charged with the same duty as a similar security for a sum of money in certain cases.
equal in amount to the value of the stock; and a transfer, assignment or disposition of any such security, and a reconveyance, release, discharge, surrender, resurrender, warrant to vacate or renunciation of any such security, shall be charged with the same duty as an instrument of the same description relating to a sum of money equal in amount to the value of the stock.
(2) A security for the payment of any rentcharge, annuity or periodical payments, by way of repayment, or in satisfaction or discharge of any loan, advance or payment intended to be so repaid, satised or discharged, shall be charged with the same duty as a similar security for the payment of a sum of money so lent, advanced or paid.
(3) A transfer of a duly stamped security, and a security by way of further charge for money or stock added to money or stock previosly secured by a duly stamped instrument, shall not be charged with any duty by reason of it containing any further or additional security for the money or stock transferred or previously secured, or the interest or dividends thereof, or any new covenant, proviso, power, stipulation or agreement in relation thereto, or any further assurance of the property comprised in the transferred or previous security.
(4) An instrument chargeable with ad valorem duty as a mortgage shall not be charged with any further duty by reason of the equity of redemption in the mortgaged property being thereby conveyed or limited in any other manner than to a purchaser, or in trust for, or according to the direction of, a purchaser.
70.
(1) A security for the payment or repayment of money to be Security for future lent, advanced or paid, or which may become due upon an account advances how to be current, either with or without money previously due, shall be charged, charged.
where the total amount secured or to be ultimately recoverable is in any way limited, with the same duty as a security for the amount so limited.
(2) Where such total amount is unlimited, the security shall be available for such an amount only as the ad valorem duty impressed thereon extends to cover, but where any advance or loan is made in excess of the amount covered by that duty the security shall, for the purpose of stamp duty, be deemed to be a new and separate instrument bearing date on the day on which the advance or loan is made.
38 CAP.
480 Stamp Duty [Rev.
2011 (3) Notwithstanding the foregoing provisions of this section, no money to be advanced for the insurance of any property comprised in the security against damage by re, or for keeping up any policy of life insurance comprised in the security, or for effecting in lieu thereof any new policy, or for the renewal of any grant or lease of any property comprised in the security upon the dropping of any life whereon the property is held, shall be reckoned as forming part of the amount in respect whereof the security is chargeable with ad valorem duty.
Partitions Partitions.
71.
(1) Every instrument and every decree or order of any court, 8 of 1985, s.
21(i), whereby the co-owners of any property divide or agree to divide such 6 of 1994, s.
59(b).
property in severalty, shall be charged with duty as a partition.
(2) For the purpose of computing the duty on an instrument of partition, the largest share remaining after any property has been divided (or, if there are two or more shares of equal value and not smaller than any of the other shares, then one of such equal shares) shall be deemed to be that from which the other shares are separated.
(3) When an instrument of partition containing an agreement to divide property in severalty is executed and a partition is effected in pursuance of the agreement, the duty chargeable upon the instrument effecting the partition shall be reduced by the amount of duty paid in respect of the rst instrument, but shall not be less than two hundred shillings.
(4) Where a nal order for effecting a partition passed by any civil court, or an award by an arbitrator directing a partition, is stamped with the stamp required for an instrument of partition and an instrument of partition in pursuance of the order or award is subsequently executed, the duty on the instrument shall be reduced by the amount of the duty paid in respect of the rst instrument, but shall not be less than two hundred shillings.
Policies of Insurance Meaning of policy 72.
For the purposes of this Act, policy of insurance includes of insurance.
any writing whereby a contract of insurance is made or agreed to be made, or is evidenced; and insurance includes assurance.
Meaning of policy 73.
(1) For the purposes of this Act, policy of marine insurance of marine insurance.
means a policy within the meaning of the Marine Insurance Act.
54 of 1968, s.
93.
Cap.
390 (2) Where a person, in consideration of a sum of money paid or to be paid for additional freight or otherwise, agrees to take up himself Rev.
2011] Stamp Duty CAP.
480 39 any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, the agreement or engagement shall be deemed to be a contract of marine insurance.
74.
(Repealed by 54 of 1968, s.
94.).
75.
(1) A stamp duty of ve shillings shall be charged on a policy Continuation clause of marine insurance containing a continuation clause, in addition to the in policy of marine stamp duty which is otherwise chargeable on the policy.
insurance.
54 of 1968, s.
95, (2) If the risk covered by the continuation clause attaches and 8 of 1985, s.
21(j), a new policy is not issued covering the risk, the continuation clause 6 of 1994, s.
60.
shall be deemed to be a new and separate contract of marine insurance expressed in the policy in which it is contained, but not covered by the stamp on the policy, and the policy shall be stamped in respect of that contract accordingly, but may be so stamped without penalty at any time not exceeding 30 days after the risk has so attached.
(3) In this section, continuation clause has the same meaning Cap.
390.
as in section 25 (4) of the Marine Insurance Act.
76.
Where any marine insurance is made for or upon a voyage and Policy for voyage also for time, or to extend to or cover any time beyond thirty days after and time chargeable the ship shall have arrived at her destination and been there moored at with two duties.
anchor, the policy shall be charged with duty as a policy for or upon a 54 of 1968, s.
96.
voyage, and also with duty as a policy for time.
77.
A policy of marine insurance shall not be stamped at any No policy valid time after it is signed or underwritten by any person, except in the two unless duly stamped.
following cases- 54 of 1968, s.
96.
(a) a policy of mutual insurance having a stamp impressed thereon may, if required, be stamped with an additional stamp provided that at the time when the additional stamp is required the policy has not been signed or underwritten to an amount exceeding the sum or sums which the duty impressed thereon extends to cover; and (b) a policy made or executed out of, but being in any manner enforceable within Kenya, may be stamped at any time within ten days after it has been rst received in Kenya on payment of the duty only: Provided that a policy of marine insurance shall, for the purpose of production in evidence, be an instrument which may legally be 40 CAP.
480 Stamp Duty [Rev.
2011 stamped after the execution thereof, and the penalty payable on stamping it shall be two thousand shillings.
Stamping of policies 78.
(1) Where the premium or consideration for a policy of of marine insurance marine insurance is expressed to be a sum not exceeding the rate of which are subject to a contingent increase two shillings and fty cents per centum of the sum insured, and is of premium.
subject to an increase (whether dened or not in the policy) in the 54 of 1968, s.
96.
event of the occurrence of a specied contingency, the premium or consideration shall, for the purposes of this Act, be treated as a premium or consideration not exceeding the rate of two shillings and fty cents per centum on the sum insured.
(2) If, owing to the occurrence of the contingency which is the occasion for an increase of the premium or consideration, the premium or consideration is increased so as to exceed the rate of two shillings and fty cents per centum of the sum insured, the policy or a new policy to be thereupon issued shall be stamped with such an additional sum as is required to represent the additional duty payable, and may be so stamped without penalty at any time not exceeding thirty days after the date on which the increased premium or consideration becomes ascertained.
Legal alterations 79.
Nothing in this Act shall prohibit the making of any alteration in policies may be which may lawfully be made in the terms and conditions of any policy made under certain of marine insurance after the policy has been underwritten, provided restrictions.
that the alteration is made before notice of the determination of the risk 54 of 1968, s.
96.
originally insured, and that it does not prolong the time covered by the insurance thereby made beyond the period of six months in the case of a policy made for a less period than six months, or beyond the period of twelve months in the case of a policy made for a greater period than six months, and that the articles insured remain the property of the same person or persons, and that no additional or further sum is insured by reason or means of the alteration.
Stamping of policies 80.
A policy of insurance made or purporting to be made upon of insurance on ships under construction, or to cover any ship or vessel, or the machinery or ttings belonging to etc.
the ship or vessel, whilst under construction or repair or on trial, shall 54 of 1968, s.
96.
be sufciently stamped for the purposes of this Act, if stamped as a policy of marine insurance made for a voyage, and, though made for a time exceeding twelve months, shall not be deemed to be a policy of marine insurance made for time.
Penalty on assuring 81.
(1) If any person - unless policy duly stamped.
(a) becomes an assurer upon any marine insurance, or enters 54 of 1968, s.
96, into any contract for marine insurance, or directly or 10 of 1990, s.
63(j).
indirectly receives or contracts or takes credit in account for any premium or consideration for any marine insurance, or Rev.
2011] Stamp Duty CAP.
480 41 knowingly takes upon himself any risk, or renders himself liable to pay, or pays, any sum of money upon any loss, peril or contingency relative to any marine insurance, unless the insurance is expressed in a policy of marine insurance duly stamped; or (b) makes or effects, or knowingly procures to be made or effected, any marine insurance, or directly or indirectly gives or pays, or renders himself liable to pay, any premium or consideration for any marine insurance, or enters into any contract for marine insurance, unless the insurance is expressed in a policy of marine insurance duly stamped; or (c) is concerned in any fraudulent contrivance or device, or is guilty of any wilful act, neglect or omission, with intent to evade the duties payable on policies of marine insurance, or whereby the duties may be evaded, he shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings.
(2) Any broker, agent or other person negotiating or transacting any marine insurance contrary to the true intent and meaning of this Act, or writing any policy of marine insurance upon material not duly stamped, shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings, and shall not have any legal claim to any charge for brokerage, commission or agency, or for any money expended or paid by him with reference to the insurance, and any money paid to him in respect of any such charge shall be deemed to be paid without consideration and shall remain the property of his employer.
(3) If any person makes or issues, or causes to be made or issued, any document purporting to be a copy of a policy of marine insurance, and there is not at the time of the making or issue in existence a policy duly stamped whereof that document is a copy, he shall be guilty of an offence and liable, in addition to any other ne or penalty to which he may be liable, to a ne not exceeding fty thousand shillings.
82.
(1) For the purposes of this Act, policy of life insurance Meaning of policy means a policy of insurance upon any life or lives or upon any event of life insurance and or contingency relating to or depending upon any life or lives except a policy of insurance policy of insurance against accident; and policy of insurance against against accident.
accident means a policy of insurance for any payment agreed to be 8 of 1985, s.
21(k), made upon the death of any person only from accident or violence 6 of 1994, s.
61.
or otherwise from a natural cause, or as compensation for personal injury.
42 CAP.
480 Stamp Duty [Rev.
2011 (2) A policy of insurance against accident shall not be charged with any further duty than ve shillings or fourty shillings, as the case may be, by reason of its extending to any payment to be made during sickness or incapacity from personal injury.
Employers 83.
The provisions of section 82 in reference to the expression indemnity insurance.
policy of insurance against accident shall extend to and include policies of insurance or indemnity against liability incurred by employers in consequence of claims made upon them by workmen who have sustained personal injury when the annual premium on those policies does not exceed forty shillings.
Penalty for not 84.
Any person who - making out policy or making, etc., (a) receives, or takes credit for, any premium or consideration any policy not duly for any insurance and does not within three months after stamped.
receiving, or taking credit for, the premium or consideration 10 of 1990, s.
63(k).
make out and execute a duly stamped policy of insurance; or (b) makes, executes or delivers out, or pays or allows in account, or agrees to pay or allow in account, any money upon or in respect of any policy other than a policy of sea insurance which is not duly stamped, shall be guilty of an offence and liable to a ne not exceeding twenty thousand shillings.
Assignment of policy 85.
(1) No assignment of a policy of life insurance shall confer on of life insurance to the assignee therein named, or his executors, administrators or assigns, be stamped before any right to sue for the money assured or secured thereby, or to give a payment of money valid discharge therefor, or any part thereof, unless the assignment is assured.
duly stamped, and no payment shall be made to any person claiming under any such assignment unless it is duly stamped.
(2) If any payment is made in contravention of this section, the duty not paid upon the assignment, together with the penalty payable on stamping the same, shall be a debt due to the Government from the person by whom the payment is made.
Receipts Provisions as to duty 86.
For the purposes of this Act, receipt includes any note, upon receipts.
memorandum or writing whereby any money amounting to one hundred 6 of 1994, s.
62.
shillings or upwards, or any bill of exchange, cheque or promissory note for money amounting to one hundred shillings or upwards, is acknowledged or expressed to have been received or deposited or paid, Rev.
2011] Stamp Duty CAP.
480 43 or whereby any debt or demand, or any part of a debt or demand, of the amount of one hundred shillings or upwards is acknowledged to have been settled, satised or discharged, or which signies or imports any such acknowledgment, and whether it is or is not signed with the name of any person.
87.
Neither the name of a banker (whether accompanied by words Certain forms of of receipt or not) within the ordinary course of his business as a banker receipts not dutiable.
upon a bill of exchange, cheque or promissory note duly stamped, nor the name of a payee written upon a draft or order, if payable to order, shall constitute a receipt chargeable with duty.
88.
(1) Any person receiving any money of one hundred shillings Obligation to give or upwards in amount, or any bill of exchange or promissory note for an receipt in certain amount of one hundred shillings or upwards, or receiving in satisfaction cases, and penalty for or part satisfaction of a debt any movable property of one hundred offences in relation to shillings or upwards in value, shall, on demand by the person paying receipts.
or delivering the money, bill, note or property, give a duly stamped 10 of 1990, s.
63(L), receipt for it.
6 of 1994, 63(b).
(2) If any person - (a) fails to give a receipt, as required by subsection (1); or (b) gives a receipt liable to duty and not duly stamped; or (c) in any case where a receipt would be liable to duty, refuses to give a receipt duly stamped; or (d) upon a payment to the amount of one hundred shillings or upwards, gives a receipt for a sum not amounting to one hundred shillings, or separates or divides the amount paid with intent to evade the duty, he shall be guilty of an offence and liable to a ne not exceeding two thousand shillings.
Settlements 89.
Where any money which may become due or payable upon As to settlement of a policy of life insurance, or upon a security, not being a marketable policy or security.
security, is settled or agreed to be settled, the instrument whereby the settlement is made or agreed to be made shall be charged with ad valorem duty in respect of that money: Provided that - 44 CAP.
480 Stamp Duty [Rev.
2011 (i) where, in the case of a policy, no provision is made for keeping up the policy, the ad valorem duty shall be charged only on the value of the policy at the date of the instrument; (ii) if in any such case the instrument contains a statement of the value and is stamped in accordance with the state- ment, it shall, so far as regards the policy, be deemed to be duly stamped, unless or until it is shown that the statement is untrue, and that the instrument is in fact insufciently stamped.
Settlements, when 90.
An instrument chargeable with ad valorem duty as a not to be charged as settlement in respect of any money, stock or security shall not be securities.
charged with any further duty by reason of containing provision for the payment or transfer of the money, stock or security, or by reason of containing, where the money, stock or security is in reversion or is not paid or transferred upon the execution of the instrument, provision for the payment by the person entitled in possession to the interest or dividends of the money, stock or security during the continuance of the possession of any annuity or yearly sum not exceeding interest at the rate of four per centum per annum upon the amount or value of the money, stock or security.
Duty when settlement 91.
Where a settlement is made in pursuance of a previous made in pursuance of agreement upon which ad valorem settlement duty exceeding twenty agreement.
shillings has been paid in respect of any property, the settlement shall 8 of 1985, s.
21(L) not be charged with ad valorem duty in respect of the same property, 6 of 1994, s.
64.
but shall be charged with the duty of forty shillings.
Share Warrants Penalty for issuing 92.
If a share warrant, or any instrument to bearer issued by or share warrant not on behalf of any company or body of persons formed or established duly stamped.
in Kenya and having the same effect as a share warrant, or any stock 10 of 1990, s.
63(m).
certicate to bearer, is issued without being duly stamped, the company issuing it shall be guilty of an offence and liable to a ne not exceeding twenty thousand shillings.
Stock Certicates to Bearer Meaning of stock 93.
For the purposes of this Act, stock certicate to bearer certicate to bearer.
Cap.
486.
includes a stock certicate to bearer issued after the commencement of this Act under the Companies Act or any other written law authorizing the creation of debenture stock, corporation stock, municipal stock or funded debt by whatever name known, and also includes an instrument to bearer issued by or on behalf of any company or body of persons formed or established in Rev.
2011] Stamp Duty CAP.
480 45 Kenya and having the same effect as a stock certicate to bearer.
Penalty for issuing 94.
(1) Where the holder of a stock certicate to bearer or an stock certicate unstamped.
instrument to bearer chargeable as a stock certicate to bearer has 10 of 1990, s.
63(n).
been entered on the register of a local authority, or any corporation or company or body of persons formed or established in Kenya, as owner of the share or stock described in the certicate, the certicate shall be forthwith cancelled so as to be incapable of being reissued to any person.
(2) Any person by whom a stock certicate to bearer or an instrument to bearer chargeable as a stock certicate to bearer is issued without being duly stamped shall be guilty of an offence and liable to a ne not exceeding twenty thousand shillings.
part Iv - relIef from stamp Duty In CertaIn Cases 95.
(1) If in connexion with a scheme for the reconstruction of Reconstruction or a company or companies or the amalgamation of any companies it is amalgamation of companies.
shown to the satisfaction of a collector that there exist the following 5 of 1960, s.
6, conditions - L.N.
236/1964.
(a) that a company with limited liability is to be registered, or that since 29th September, 1951, a company has been incorporated by Letters Patent or Act of the United Kingdom Parliament, or under an Act of Kenya, or the nominal share capital of a company has been increased; (b) that the company (in this section referred to as the transferee company) is to be registered or has been incorporated or has increased its capital with a view to the acquisition either of the undertaking of, or of not less than ninety per centum of the issued share capital of, any particular existing company; (c) that the consideration for the acquisition (except such part thereof as consists in the transfer to or discharge by the transferee company of liabilities of the existing company) consists as to not less than ninety per centum thereof - (i) where an undertaking is to be acquired, in the issue of shares in the transferee company to the existing company or to holders of shares in the existing company; or (ii) where shares are to be acquired, in the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company; 46 CAP.
480 Stamp Duty [Rev.
2011 then to the provisions of subsection (2) shall apply.
(2) If the collector is satised as to the conditions set out in subsection (1) then, subject to the further provisions of this section- (a) the nominal share capital of the transferee company, or the amount by which the capital of the transferee company has been increased, as the case may be, shall, for the purpose of computing the stamp duty chargeable in respect of that capital, be treated as being reduced by either - (i) an amount equal to the amount of the share capital of the existing company, or, in the case of the acquisition of a part of an undertaking, equal to such proportion of the share capital as the value of that part of the undertaking bears to the whole value of the undertaking; or (ii) the amount to be credited as paid up on the shares to be issued as consideration and on the shares, if any, to be is- sued to creditors of the existing company in consideration of the release of debts (whether secured or unsecured) due or accruing due to them from the existing company or of the assignment of those debts to the transferee company, whichever amount is the less; and (b) stamp duty under the heading Conveyance or Transfer on sale in the Schedule shall not be chargeable on any instrument made for the purposes of, or in connexion with, the transfer of the undertaking or shares or on any instrument made for the purposes of, or in connexion with, the assignment to the transferee company of any debts, secured or unsecured, of the existing company, nor shall any such duty be chargeable on any instrument vesting, or relating to the vesting of, the undertaking or shares in the transferee company.
(3) No instrument referred to in paragraph (b) of sub section (2) shall be deemed to be duly stamped unless - (a) it is stamped with the duty to which it would, but for this section, be liable; or (b) it has, in accordance with the provisions of section 17, been stamped with a particular stamp denoting that - Rev.
2011] Stamp Duty CAP.
480 47 (i) it is not chargeable with any duty; or (ii) it is duly stamped; but where, by reason of this subsection, a fee has been paid under section 17 in respect of the stamping of such an instrument, no fee shall be payable under that section in respect of the stamping of any further instrument of transfer or assignment between the existing company and the tranferee company where the conditions under which that further transfer or assignment takes place are those under which the transfer or assignment in respect of which the fee was paid took place.
(4) In the case of an instrument made for the purposes of, or in connexion with, a transfer to a company within the meaning of the Cap.
486.
Companies Act, the provisions of paragraph (b) of subsection (2) shall not apply unless the instrument is either - (a) executed within a period of twelve months from the date of the registration of the transferee company or the date of the resolution for the increase of the nominal share capital of the transferee company, as the case may be; or (b) made for the purpose of effecting a conveyance or transfer in pursuance of an agreement which has been led, or particulars of which have been led, with the Registrar of Companies within that period of twelve months.
(5) The provisions of this section with respect to the release and assignment of debts of the existing company shall not, except in the case of debts due to banks or to trade creditors, apply to debts which were incurred less than two years before the proper time for making a claim for exemption under this section.
(6) For the purposes of a claim for exemption under paragraph (b) of subsection (2), a company which has, in connexion with a scheme of reconstruction or amalgamation, issued any unissued share capital shall be treated as if it had increased its nominal share capital.
(7) A company shall not be deemed to be a particular existing company within the meaning of this section unless it is provided by the memorandum of association of, or the Letters Patent, Act of the United Kingdom Parliament or Act of Kenya incorporating, the transferee company that one of the objects for which the company is established is the acquisition of the undertaking of, or shares in, the existing company, or unless it appears from the resolution, Act of the United Kingdom Parliament, Act of Kenya or other authority for the increase of the capital of the transferee company that the increase is authorized for the purpose 48 CAP.
480 Stamp Duty [Rev.
2011 of acquiring the undertaking of, or shares in, the existing company.
(8) In a case where the undertakings of or shares in two or more companies are to be acquired, the amount of the reduction to be allowed under this section in respect of the stamp duty chargeable in respect of the nominal share capital or the increase of the capital of a company shall be computed separately in relation to each of those companies.
(9) Where a claim is made for exemption under this section, the collector may require the delivery to him of a statutory declaration in such form as he may direct, made by an advocate, and of such further evidence, if any, as the collector may reasonably require.
(10) If - (a) where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim was untrue in any material particular, or that the conditions specied in subsection (1) are not fullled in the reconstruction or amalgamation as actually carried out; or (b) where shares in the transferee company have been issued to the existing company in consideration of the acquisition, the existing company within a period of two years from the date, as the case may be, of the registration or incorporation, or of the authority for the increase of the capital, of the transferee company ceases, otherwise than in consequence of reconstruction, amalgamation or liquidation, to be the benecial owner of the shares so issued to it; or (c) where any such exemption has been allowed in connexion with the acquisition by the transferee company of shares in another company, the transferee company within a period of two years from the date of its registration or incorporation or of the authority for the increase of its capital, as the case may be, ceases, otherwise than in consequence of reconstruction, amalgamation or liquidation, to be the benecial owner of the shares so acquired, the exemption shall be deemed not to have been allowed and an amount equal to the duty remitted shall become payable forthwith, and shall be recoverable from the transferee company as a debt due to the Government, together with interest thereon at the rate of ve per centum per annum in the case of duty remitted under paragraph (a) of subsection (2) from the date of the registration of incorporation of the transferee company or the increase of its Rev.
2011] Stamp Duty CAP.
480 49 capital, as the case may be, and, in the case of duty remitted under paragraph (b) of subsection (2), from the date on which it would have become chargeable if the Stamp (Amendment) Ordinance, 58 of 1951.
1951, (now repealed) had not been enacted.
(11) If in the case of any scheme of reconstruction or amalgamation the collector is satised that at the proper time for making a claim for exemption from duty under subsection (1) there were in existence all the necessary conditions for the exemption other than the condition that not less than ninety per centum of the issued share capital of the existing company would be acquired by the transferee company, the collector may, if it is proved to his satisfaction that not less than ninety per centum of the issued capital of the existing company has under the scheme been acquired within a period of six months from the earlier of the two following dates, that is to say - (a) the last day of the period of thirty days after the rst allotment of shares made for the purposes of the acquisition; or (b) the date on which an invitation was issued to the shareholders of the existing company to accept shares in the transferee company, and on production of the instrument on which duty paid has been impressed, direct repayment to be made of such an amount of duty as would have been remitted if that condition had been originally fullled.
(12) In this section, except where the context otherwise requires - (a) references to the undertaking of an existing company include references to a part of the undertaking of an existing company; (b) shares includes stock.
96.
(1) Stamp duty under the heading Conveyance or Transfer on Transfers between sale in the Schedule shall not be chargeable on an instrument to which associated this section applies.
companies.
5 of 1960, s.
7.
(2) No instrument to which this section applies shall be deemed to be duly stamped unless - (a) it is stamped with the duty to which it would, but for this section, be liable; or (b) it has, in accordance with the provisions of section 17, been stamped with a particular stamp denoting - 50 CAP.
480 Stamp Duty [Rev.
2011 (i) that it is not chargeable with any duty; or (ii) that it is duly stamped; but, where, by reason of this subsection, a fee has been paid under section 17 in respect of the stamping of such an instrument, no fee shall be payable under that section in respect of the stamping of any further instrument of conveyance or transfer between the same companies where the conditions under which that further conveyance or transfer takes place are those under which the conveyance or transfer in respect of which the fee was paid took place.
(3) This section shall apply to any instrument as respects which it is shown to the satisfaction of the collector - (a) that the effect thereof is to convey or transfer a benecial interest in property from one company with limited liability (hereinafter called the transferor) to another such company (hereinafter called the transferee); and (b) that either - (i) one of such companies is benecial owner of not less than ninety per centum of the issued share capital of the other company; or (ii) not less than ninety per centum of the issued share capital of each of the companies is in the benecial ownership of a third company with limited liability; and (c) that the instrument was not executed in pursuance of or in connexion with an arrangement whereunder - (i) the consideration for the conveyance or transfer was to be provided directly or indirectly by a person other than a com- pany which at the time of the execution of the instrument was associated with either the transferor or the transferee; or (ii) the benecial interest in the property was previously conveyed or transferred directly or indirectly by such a person.
Exemption of 97.
Notwithstanding anything contained in this Act, no rules of a building societies building society registered under the Building Societies Act (hereinafter documents from stamp duty.
referred to as a building society), nor any copy thereof nor any receipt, Cap.
489.
nor any entry in any book of receipt for money deposited in the funds Rev.
2011] Stamp Duty CAP.
480 51 of a building society, or for any money received by any member, or his executors, administrators, assigns or attorneys, from the funds of a building society, nor any transfer of any share, nor any bond or other security to be given to or on account of a building society, or by any ofcer thereof, nor any order on any ofcer for payment of money to any member, nor any appointment of any agent, nor any certicate or other instrument for the revocation of any such appointment, nor any other instrument or document whatever required or authorized to be given, issued, signed, made or produced in pursuance of the Building Societies Act, or of the rules of a building society, shall be subject or liable to or charged with any stamp duty or duties whatsoever: Provided that this exemption shall not extend to a mortgage, nor to the release or discharge of a mortgage.
part v - allowanCes for stamps In CertaIn Cases 98.
Subject to the provisions of section 99, and of any regulations Allowance for made under this Act, and to the production of such evidence by statutory spoiled stamps.
declaration or otherwise as the collector may require, allowance shall 5 of 1960, s.
8.
be made by a collector for stamps spoiled in the following cases - (a) the stamp on any material inadvertently and undesignedly spoiled, obliterated or by any means rendered unt for the purpose intended, before the material bears the signature of any person or any instrument written thereon is executed by any party; (b) any adhesive stamp which has been inadvertently and undesignedly spoiled or rendered unt for use and has not in the opinion of the collector been afxed to any material; (c) any adhesive stamp representing a fee capable of being collected by means of that stamp which has been afxed to material; (d) the stamp on any bill of exchange signed by or on behalf of the drawer which has not been accepted or made use of in any manner whatever or delivered out of his hands for any purpose other than by way of tender for acceptance; (e) the stamp on a promissory note signed by or on behalf of the maker which has not been made use of in any manner whatever or delivered out of his hands; (f) the stamp on a bill of exchange or promissory note which from any omission or error has been spoiled or rendered 52 CAP.
480 Stamp Duty [Rev.
2011 useless, although, being a bill of exchange, it may have been accepted or endorsed or, being a promissory note, it may have been delivered to the payee, provided that another completed and duly stamped bill of exchange or promissory note is produced identical in every particular, except in the correction of the error or omission, with the spoiled bill or note; (g) the stamp used for an instrument executed by any party thereto - (i) but afterwards found to be absolutely void from the beginning; (ii) but afterwards found unt, by reason of any error or mistake therein, for the purpose originally intended; (iii) which has not been made use of for any purpose whatever and which, by reason of the inability or refusal of some necessary party to sign it or to complete the transaction according to the instrument, is incomplete and insuf- cient for the purpose for which it was intended; (iv) which by reason of the refusal of any person to act under it, or for want of enrolment or registration within the time required by law, fails of its intended purpose or becomes void; (v) which is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped, or which becomes useless in consequence of the transaction intended to be thereby effected being effected by some other instrument duly stamped.
Conditions upon 99.
No application for relief under section 98 shall be granted - which applications under section 98 shall (a) unless the application is made within ninety days after the be granted.
stamp has been spoiled or become useless or, in the case of 6 of 1994, s.
65.
an executed instrument, after the date of the instrument or, if it is not dated, within two years after the execution thereof by the person by whom it was rst or alone executed, or within such further time as the collector may allow in the case of an instrument sent out of Kenya for execution or when from unavoidable circumstances an instrument, for which another has been substituted, cannot be provided within that period; Rev.
2011] Stamp Duty CAP.
480 53 (b) if, in the case of an executed instrument, any legal proceedings have been commenced in which the instrument could or would have been given or offered in evidence and unless the instrument is given up to be cancelled.
100.
Where a person has inadvertently used for an instrument Allowance for misused stamps.
liable to duty a stamp of sufcient amount but of improper description, or a stamp of greater value than was necessary, or has inadvertently used a stamp for an instrument not liable to any duty, a collector may, on application made within one year after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was rst or alone executed, and upon the instrument, if liable to duty, being stamped with the proper duty, and subject to the provisions of section 21, cancel and allow as spoiled the stamp so misused.
101.
In any case in which allowance is made for spoiled or Allowance for spoiled or misused misused stamps, the collector may give in lieu thereof - stamps, how to be made.
(a) other stamps of the same description and value; or 6 of 1994, s.
66.
(b) if required, and he thinks t, stamps of any other description to the same amount in value; or (c) at his discretion, the value in money of the spoiled or misused stamps less ve cents for each shilling or fractional part of a shilling, or paper bearing impressed stamps to the value of the spoiled or misused stamps less twenty-ve cents for each shilling or fractional part of a shilling.
102.
Where a person is possessed of a stamp or stamps which Allowance for stamps not required for use.
have not been spoiled or rendered unt or useless for the purpose 6 of 1994, s.
67, intended, but for which he has no immediate use, a collector shall 10 of 2010, s.
43.
repay to that person the value of the stamp or stamps in money, deducting twenty-ve cents for each shilling or fractional part of a shilling, upon that person delivering it or them to be cancelled, and proving to the collectors satisfaction - (a) that the stamp or stamps were purchased by that person with a bona de intention to use them; and (b) that he has paid the full price thereof; and (c) that they were so purchased within the period of one hundred and eighty days next preceding the date on which they were so delivered: 54 CAP.
480 Stamp Duty [Rev.
2011 Provided that, where the person is a licensed vendor of stamps, the collector may make the repayment of the sum actually paid by the vendor without any such deduction.
part vI - mIsCellaneous As to discontinuance 103.
Whenever the Senior Collector of Stamp Duties determines of dies.
to discontinue the use of any die and provides a new die to be used in lieu thereof and gives public notice thereof in the Gazette, then from and after any day to be stated in the notice (that day not being within one month after the notice is so published) the new die shall be the only lawful die for denoting the duty chargeable in any case in which the discontinued die would have been used; and any instrument rst executed by a person or bearing date after the day so stated and stamped with the discontinued die shall be deemed, subject to subsections (2) and (3), to be not duly stamped.
(2) If any instrument stamped with the discontinued die, and rst executed after the day so stated at any place outside Kenya, is brought to a collector within fourteen days after it has been received in Kenya, then upon proof of the facts to the satisfaction of the collector the stamp thereon shall be cancelled and the instrument shall be stamped with the same amount of duty by means of the lawful die, without payment of any penalty; (3) Any person having in his possession any material stamped with the discontinued die, and which by reason of the providing of the new die has been rendered useless, may, at any time within six months after the day stated in the notice, send it to the collector, who may thereupon cause the stamp on that material to be cancelled and the same material, or if the collector thinks t any other material, to be stamped with the new die, in lieu of and to an equal amount with the stamp so cancelled.
Conditions and 104.
Any condition of sale framed with the view to precluding agreements as to duty void.
objection or requisition upon the ground of absence or insufciency of stamp upon any instrument executed after the commencement of this Act, and any contract, arrangement, or undertaking for assuming the liability on account of absence or insufciency of stamp upon any such instrument or indemnifying against that liability, absence or insufciency, shall be void.
Compounding duty 105.
(1) The Senior Collector of Stamp Duties may enter on cheques.
into an agreement with any banker for the composition of the stamp duty on unstamped cheques on the following conditions - (a) that the cheques shall be drawn and issued on forms to be Rev.
2011] Stamp Duty CAP.
480 55 supplied or adopted by the banker; (b) that the banker shall levy upon or charge to the person to whom the cheques are issued the stamp duty mentioned in the Schedule; (c) that the banker shall pay on or before the last day of each month to the Senior Collector of Stamp Duties the amount due and collected thereon as duties on the unstamped cheques issued during the immediately preceding month, and shall render with each payment an account is such form as the Senior Collector of Stamp Duties may require; (d) that the banker shall deposit with the Senior Collector of Stamp Duties, as security for the due payment of any moneys payable under paragraph (c), such sum (if any) as the Senior Collector of Stamp Duties may direct.
(2) Cheques drawn and issued on forms supplied or adopted by the bank in accordance with this section shall be deemed to be duly stamped.
106.
(1) The Minister may on the recommendation of the Minister Power to exempt for the time being responsible for matters relating to land, by notice in instruments.
the Gazette, direct that any instrument or any class of instruments shall 6 of 1994, s.
68, 6 of 2005, s.
40.
be exempted from the provisions of this Act if he is satised that it is in the public interest so to do.
(2) The Minister shall not exempt any instrument or class of instruments from the provisions of this Act in respect of which stamp duty has already been paid and the instruments have been duly stamped.
107.
Any ofcer or servant of a public body having in his custody Registers, books, any registers, books, records, papers, documents or proceedings, the etc., to be open to inspection whereof may tend to secure any duty, or to prove or lead inspection.
to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person thereto authorized by a collector to inspect the registers, books, records, papers, documents and proceedings, and to take such notes and extracts as he may deem necessary, without fee or reward, and in case of refusal shall be guilty of an offence and liable to a ne not exceeding ve hundred shillings.
108.
If any person, whose ofce it is to enrol, register or enter in Penalty for enrolling, or upon any rolls, books or records any instrument chargeable with duty, etc., instrument not enrols, registers or enters any such instrument not being duly stamped, duly stamped.
he shall be guilty of an offence and liable to a ne not exceeding ve 56 CAP.
480 Stamp Duty [Rev.
2011 hundred shillings.
Responsibility for 109.
(1) If any instrument sent to a collector under subsection loss of or damage to (3) of section 19 is lost, destroyed or damaged during transmission, the instrument.
person sending it shall not be liable for the loss, destruction or damage.
(2) When any instrument is about to be sent, the person from whose possession it came into the hands of the person impounding it may require a copy thereof to be made at the expense of the rst- mentioned person and authenticated by the person impounding the instrument: Provided that in the event of the loss, destruction or damage of the original instrument the authenticated copy shall be admissible in evidence in any court, but the copy shall be chargeable with duty and penalty as if it were the original.
Collector may 110.
A Collector may administer any oath or afrmation which administer oaths.
may be necessary for the purposes of this Act.
part vII - CrImInal offenCes anD proCeDure Penalty for not 111.
Any person drawing or executing a bill of exchange or a drawing full number policy of marine insurance purporting to be drawn or executed in a set of bills or marine of two or more and not at the same time drawing or executing, on paper policies purporting to duly stamped, the whole number of bills or policies of which the bill or be in sets.
policy purports the set to consist shall be guilty of an offence and liable 10 of 1990, s.
63(o).
to a ne not exceeding one hundred thousand shillings.
Penalty for post- 112.
Any person who - dating bills and for other devices to (a) with intent to defraud the Government of duty, draws, makes defraud the revenue.
or issues a bill of exchange or promissory note, bearing a 10 of 1990, s.
63(o).
date subsequent to that on which the bill or note is actually drawn or made; or (b) knowing that the bill or note has been so post-dated, endorses, transfers or presents for acceptance or payment, or accepts, pays or receives payment of, the bill or note, or in any manner negotiates it, shall be guilty of an offence and liable to a ne not exceeding one hundred thousand shillings.
Penalty for frauds 113.
(1) Any person who practises or is concerned in any in relation to stamp fraudulent act, contrivance or device, not specially provided for by any duties.
written law, with intent to defraud the Government of any stamp duty 10 of 1990, s.
63(o).
Rev.
2011] Stamp Duty CAP.
480 57 or penalty shall be guilty of an offence and liable to imprisonment for a term not exceeding one year or to a ne not exceeding one hundred thousand shillings, or to both such imprisonment and ne.
(2) Any person who, for the purpose of evading any stamp duty or penalty, falsies, mutilates or destroys any book of account or other instrument whatsoever shall be guilty of an offence and liable to imprisonment for a term not exceeding one year or to a ne not exceeding one hundred thousand shillings, or to both such imprisonment and ne.
114.
(1) Where any obligation or liability is under the provisions Liability in the case of this Act imposed upon a corporate body and the obligation or liability of corporate bodies and rms.
is not discharged, every director, manager, secretary and other ofcer 10 of 1990, s.
63(p).
of the corporate body who is wilfully a party to the default, and the corporate body, shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings.
(2) Where any obligation or liability is under the provisions of this Act imposed upon a rm and the obligation or liability is not discharged, every partner in the rm, and every servant of the rm, who is wilfully a party to the default, and the person appearing to have the management of the rm within Kenya, shall be guilty of an offence and liable to a ne not exceeding fty thousand shillings.
Search.
115.
(1) If it appears to a magistrate upon the oath of any person 10 of 1990, s.
63 (q).
that there is reason to believe that there are or may be upon or in the possession or under the control of any person, or on any premises, any books of account or other instruments whatsoever of which any of the contents may tend to show that an offence under this Act has been committed, the magistrate may issue a search warrant authorizing any person named or referred to in the warrant to search any such person, and to enter and search any such premises and any person found therein, and to inspect and take copies of any books of account or other instruments found on those premises or upon that person.
(2) Any copies so taken shall be admissible in evidence in any proceedings under this Act.
(3) If any person obstructs any such inspection or taking of copies in any manner whatsoever he shall be guilty of an offence and liable to a ne not exceeding twenty thousand shillings.
116.
The Senior Collector of Stamp Duties may reward any Power to reward person who informs a collector of an offence under this Act or assists informers.
10 of 1990, s.
63(r).
in the recovery of any ne or penalty, but a reward exceeding ten 58 CAP.
480 Stamp Duty [Rev.
2011 thousand shillings shall not be paid in any case without the consent of the Treasury.
part vIII General Exemptions from 117.
(1) There shall be exempt from stamp duty under this Act - stamp duty.
5 of 1960, s.
9, (a) an instrument executed by or on behalf of or in favour of L.N.153/1962, L.N.176/1962, the Government in any case in which, but for this exemption, L.N.236/1964, the Government would be liable to pay the duty; 21 of 1966, Sch., 13 of 1972, Sch., (b) a bill of exchange, cheque or promissory note drawn or 10 of 1990, s.
63(s), made in Uganda or in Tanzania and accepted and paid or 10 of 2006, s.
38.
presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in Kenya, if the bill of exchange, cheque or promissory note has previously been duly stamped in Uganda or Tanzania; (c) a power, warrant or letter of attorney granted or to be granted by the Managing Director of the Kenya Posts and Telecommunications Corporation, and a power, warrant or letter of attorney given by any depositor in the post ofce Cap.
493B., savings bank established under the provisions of the Kenya Post Ofce Savings Bank Act (hereinafter referred to as the savings bank) to any other person, authorizing him to make a deposit of a sum of money in the savings bank on behalf of the depositor or to sign any document or instrument required by the rules of the savings bank to be signed on making the deposit or to receive back any sum of money deposited in the savings bank, or the interest arising therefrom; a receipt or an entry in a book of receipts for money deposited in the savings bank, or for any money received by a depositor or his executors or administrators, assigns, attorneys or agents, from the funds thereof; and a draft or order, or an appointment of an agent, or any certicate or other instrument or document whatsoever, required or authorized to be given, issued, signed, made or produced in pursuance of that Act or of any rules made thereunder; (d) a transfer of shares in the stock or funds of the Government, the Organization, the Authority, the Government of Uganda or the Government of Tanzania; (e) a conveyance or transfer of any stock or marketable security in any company incorporated in Uganda or Tanzania, if the Rev.
2011] Stamp Duty CAP.
480 59 conveyance or transfer has been duly stamped in accordance with the law of the territory in which the company was incorporated; (f) an instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of a ship or of any part, interest, share or property of or in a ship; (g) a bond given by a public ofcer for the due execution of his duties; (h) a will, codicil or other testamentary disposition; and (hh) instruments for the sale or transfer of land for the construction or expansion of educational institutions: Provided that stamp duty shall become payable if such land reverts to any other use.
(i) the instruments generally or specially exempted in the shedule; (j) the exemption of all instruments with respect to licences of business activities of an export processing zone enterprise licenced under the Export processing zones Act, 1990; (k) the sale conveyance, transfer or issue of shares, preferred shares, stocks, warrants or similar capital market instruments No.
17 of 1988.
which are listed and transacted on the Nairobi Stock Exchange or other securities exchange approved under the Capital Markets Authority Act, 1988.
(2) The exemption conferred by this section on the Government shall extend to the Community and to the Corporations within the Community.
118.
There shall be defrayed out of moneys provided Expenses.
by Parliament administrative expenses incurred by the Minister or by L.N.
256/1964.
any other Minister under this Act.
119.
The Minister may make regulations as may appear to Regulations.
him to be necessary or expedient for the proper carrying out of the intent and provisions of this Act, and, without prejudice to the generality of the foregoing, may make regulations respecting- (a) the supply and sale of stamps and stamped papers; 60 CAP.
480 Stamp Duty [Rev.
2011 (b) the persons by whom alone the supply or sale is to be conducted; and (c) the duties and remuneration of those persons.
Power to amend 119A (1) The Minister may, by order published in the Gazette, Schedule.
amend the Schedule.
8 of 1985, s.
21(m).
(2)Every order made under this section shall be laid before the National Assembly without unreasonable delay, and, if a resolution is passed by the Assembly within twenty days on which it next sits after the order is laid before it that the order be annulled, it shall thenceforth be void, but without prejudice to the validity of anything previously done thereunder or to the making of any new order.
Appontments under 120.
Any appointment made under the Stamp Ordinance (now Cap.
259 (1948).
repealed) shall continue in force and have effect as if made under this Act.
Rev.
2011] Stamp Duty CAP.
480 61 Act ime for Stamping ovided in this 15 of 1961, Sch., T if other than that generally or specially pr L.N.
153/1962, L.N.
176/1962, L.N.
761/1963, 54 of 1968, s.
96, esponsible 10 of 1973, s.
4, 6 of 1994, s.
69, 8 of 1997, s.
55, Person rfor Stamping 4 of 1999, s, 90, 9 of 2000, s.
90, 9 of 2007, s, 76, 17) and 10 of 2010, s.
44.
Conveyance, operty.
and section 49.and sectionetc etc.
and Duty eement Bond, Partnership Partition.
Exchange of Preement Agr Lease.
Mortgage, Partition.
Partnership.
DUTIES ON INSTRUMENTSSeeSeeetc.SeeSeeAgrSee31.SeeSeeSeeSee (Sections 5, 6(3) and (4) and 1 AMP ST.
.
.
enancy e of Goods.
.
.
.
SCHEDULE (s.69) Instrument eement for Dissolution of Partnership.
.eement to Divide.
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eement for Exchange.
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eement for Hireement for Lease, Letting or Teement or Contract accompanied with a eement for Partition.
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.eement for Partnership.
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Agr Administration Bond.
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Agr AgrAgr AgrAgrdeposit.
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.AgrAgr 62 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible rst rson pe he Person r for Stamping , T executing.
) Conveyance Contd.
and - ( Duty eement Agr See etc., and section 49.
Sh.
100 SCHEDULE DUTIES ON INSTRUMENTS AMP ST , ged with any duty under hand only and not eement or any Memorandum eement Instrument Agr Exemptions- Agreement, letter or Agreement, letter or 1.
an Agr of otherwise specically charwhether it be only evidence of a contract or obligatory upon the parties from its being a written instrument.
.
.
(1) memorandum of agreement made for or relating to the sale of any goods, wares or merchandise.(2) Rev.
2011] Stamp Duty CAP.
480 63 Act ime for Stamping T if other than that generally or specially provided in this Person responsible for Stamping ) Contd.
- ( Duty See Conveyance, etc.See Mortgage, etc.
See Conveyance, etc.
See Bond, etc.
SCHEDULE.
.
.
rustee and T Instrument made in the form of a tender to the Government for or relating to any loan.Agreement or memorandum of agreement, being a contract of service.Agreement made with Kenya Railways for the conveyance of passengers or goods.
(3) (4) Annuity- memorandum of agreement Appointment of a New (1) Conveyance in consideration of.
(2) Creation of, by way of security(3) Purchase of.
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(4) Instruments relating to, upon any other occasion.
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2.
Appointment in execution of a power 64 CAP.
480 Stamp Duty [Rev.
2011 Before delivery to the Registrar of Companies.
ime for Stamping if T other than that generally or specially provided in this Act }.
All person executing.
The appointor } Person responsible for Stamping.
).
Contd Attorney Duty Sh.
200 Sh.
2,000 Sh.
300 See Conveyance, etc.
See Mortgage, etc.See Conveyance, etc.See Policy of Insurance.See Power of SCHEDULE - ( , by any , or of any , or of any use, share 53.
Association of a company Instrument section , Letter or Power of.
.
.
.
.
.
see Articles of Articles of a company not formed of any propertyor interest in any propertyinstrument not being a will.
.
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.
And 3.(1) (2) for prot.
Assent to Bequest.
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Assignment-(1) By way of securitysecurity.
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.(2) Upon a sale or otherwiseAssurance.
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Attorney Rev.
2011] Stamp Duty CAP.
480 65 Act ime for Stamping T if other than that generally or specially provided in this (a) If drawn in Kenya, before execution.(b) If drawn out of Kenya, in ccordance with section 34.
All person executing.
} Person responsible for Stamping.
).
.
Contd ransfer Duty Chattels T Sh.
2.50 See See Mortgage, etc.See Marketable Security SCHEDULE - ( , drawn, or Instrument And see sections 32 to 37 and 105.5.
Bill of Sale.
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(1) For securing the payment or (2) For securing the transfer or o4.
Bill of Exchange payable on demand or at sight or on presentation or within three days after date or sight And see sections 32,34,36 and 105Exemption-Bill of Exchange of any other kind whatsoever and Promissory Note of any kind whatsoeverexpressed to be payable, or actually paid or endorsed, or in any manner negotiated in Kenya.
Bond - repayment of money retransfer of stock 66 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible Person r for Stamping ) Contd.
- ( Duty See Conveyance, etc.
SCHEDULE -annuation annuity), - Instrument 1) Being the only or principal or ( (3) In relation to any annuity upon the 6.
Bond, Covenant or Instrument of any primary security for any annuity (except upon original creation thereof by way of sale or security and except a super or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease- For a denite and certain period, so that the total amount to be ultimately payable can be ascertained, for every Sh.
1,000, and also for any fractional original creation and sale thereof.
.
.
.
kind whatsoever Rev.
2011] Stamp Duty CAP.
480 67 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible.
.
Person rfor StampingThe obligee, covenantee, or other person taking the security The obligee, covenantee, or other person taking the security ) Contd.
- ( Duty Sh.
7.50 Sh.
10.00 Sh.
2.00 SCHEDULE Instrument part of Sh.
1,000, of such amount.Where the total amount to be For a term of life or any other indenite period, for every Sh.
100, and also for any fractional part of Sh.
100, of the annuity or sum periodically payable.
(2) Being a collateral or auxiliary or additional or substituted security for any of the above-mentioned purposes where the principal or primary security is duly stamped- ultimately payable can be ascertained, for every Sh.
1,000, and also for any fractional part of Sh.
1,000, of such amount 68 CAP.
480 Stamp Duty [Rev.
2011 ime for Stamping this Act T if other than that generally or specially provided in.
.
The obligee, The grantor covenantee or other person taking } the security Person responsible for Stamping.
) Contd Duty Sh.
4.00 Sh.
2.00 SCHEDULE - ( , , that is to say Instrument In any other case, for every Sh.
100, and also for any fractional part of Sh.
100, of the annuity or sum periodically payable.
.
.
.
.
.
.
.
(3) Being a grant or contract for payment of a superannuation annuitya deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specied age, and so to commence on his attaining that age-For every Sh.
100, and also for any fractional part of Sh.
100, of the annuity.
.
.
.
.
.
.
.
.(4) Given pursuant to the provisions of any written law or on the directions of any public ofcer for or in Rev.
2011] Stamp Duty CAP.
480 69 Act ime for Stamping ovided in this T if other than that generally or specially prBefore execution.Before execution.Before execution.
.
covenantee,.
covenantee,.
esponsible for obligee, obligee, Person rStamping The or other person taking the security The or other person taking the securityThe Administrator ) Contd.
- ( Duty Sh.
200 Sh.
200 Sh.
200 SCHEDULE Instrument revenues of Kenya or for preventing frauds thereon or evasions thereof, or for any other matter or thing relating thereto.
.
.
.
.the due execution of any ofce or employment, or to account for money or any other property received by virtue thereof, or executed by a surety to secure the due performance of any agreement or contract.
.
.
.
.
.
.
.
.
.administration.
.
.
.
.
.
respect of any of the duties or (5) Executed by way of security for (6) On obtaining letters of 70 CAP.
480 Stamp Duty [Rev.
2011 ime for Stamping this Act T if other than that generally or specially provided in.
The obligee, covenantee or other person taking } the security Before execution.
Person responsible for Stamping.
) Contd Duty Sh.
200Sh.
2.00 Sh.
7.50 Sh.
7.50 SCHEDULE - ( , not ged with any Instrument Accompanied with a deposit of title deeds for making a mortgage or other security on any immovable property - For every Sh.
1,000, and also forany fractional part of Sh.
1,000, of the sum secured.
.
.
.
.
.
.
.
.
or writing for making redeemable any disposition or assignment, apparently absolute, but intended only as a security - For every Sh.
1,000, and also for any fractional part of Sh.
1,000, of the sum secured.
.
.
.
.
.
.
.
.specically charduty.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Exemption - (7) (8) Being a declaration, or other deed (9) Of any kind whatsoever Rev.
2011] Stamp Duty CAP.
480 71 ime for Stamping this Act T if other than that generally or specially provided in Cap.
485A.
9 of 2007.
.
) The person who was responsible for stamping theoriginal instrument.
} Contd Person responsible for Stamping SCHEDULE - (Duty The same duty as on the originalSh.
20 - (including of geable does not exceed Sh.
10 Act the registration thereof or on Instrument Bail Bond.
Cancellation, Instrument-original instrument was charnew capital or increase of 7.
any instrument by which any instrument previously executed is cancelled), if not otherwise provided forWhere the duty with which the In any other case.
.
.
.
.
.
.
.8.
Capital Duty on the capital of a company other than a company listed on a stock exchange approved under capital markets any increase in the capital of a company-For every Sh.
2,000, and also for any fractional part of Sh.
2,000, of the amount of 72 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr.
esponsible Person r for Stamping The company The transferee.
) Contd.
, etc.
, etc.
- ( of Arrangement.
Duty eement.
Conveyance Mortgage Bill of Exchange.
Deed Agr Sh.
20 See Sh.
200 See See See See SCHEDULE Act.
.
.
.
.
.
.
.
- Act.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.ransfer.
.
.
.
.
.
.
.
.
.
.
for or relating to T Section 39.
ransfer section 38.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Instrument capital, as the case may be.
.
.
.
.
.
.
see see.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
And Chattel T Any instrument registrable under the Chattels Any instrument registrable under Contract Note Certicate of Sale9.
(1) And (2) the Companies Cheque Composition Deed Contract 10.
the sale or purchase of any stock or marketable security- Rev.
2011] Stamp Duty CAP.
480 73 Act ime for Stamping Before delivery of the Before delivery of the T if other than that generally or specially provided in this note.note.
, -.
) The broker or agent orwhere there is no broker or agent, the principal delivering the note.
} Contd Person responsible for Stamping SCHEDULE - (Duty Sh.
1 Sh.
2 Sh.
2 on sale ransfer of this Schedule)- Instrument Where the value of the stock or marketable security does not exceed Sh.
2,000.
.
.
.
.
.
.Where the value of the stock or marketable security exceeds Sh.
2,000 but does not exceed Sh.
10,000.
.
.
.
.
.
.
.
.
.
.And for every Sh.
10,000, and also for any fractional part of Sh.
10,000, in excess of Sh.
10,000.
.
.
.
.
.
.
.
.
.
Conveyance or T.
of any property (except any stock Where the amount or value of the 11 or marketable security or any immovable property subject to duty under item 12A consideration for the sale does 74 CAP.
480 Stamp Duty [Rev.
2011 9 of 2000, ime for Stamping this Act 9 of 2007.
T if other than that generally or specially provided in ror se ahcrupehT transferee.
} Person responsible for Stamping.
) Contd - ( Duty Sh.
10 Sh.
20 Sh.
30 Sh.
40 Sh.
20 Sh.
5 SCHEDULE on sale ransfer sections 43 to 52.
Instrument see Exceeds Sh.
500 but does not exceed Sh.1,000.
.
.
.
.
.
.Exceeds Sh.
1,000 but does not exceed Sh.
1,500.
.
.
.
.
.
.Exceeds Sh.
1,500 but does not exceed Sh.
2,000.
.
.
.
.
.
.
.And for every Sh.
1,000, and And.
Conveyance or Tconsideration for the sale does not exceed Sh.
500.
.
.
.
.
.
not exceed Sh.
500.
.
.
.
.
.
also for any fractional part of Sh.
1,000 in excess of Sh.
2,000.
.
.
.
.
.
.
.
.
.
.
.
12of any stock or marketable security- Where the amount or value of the Rev.
2011] Stamp Duty CAP.
480 75 ime for Stamping this Act T if other than that generally or specially provided in ror se ahcrupehT transferee.} Person responsible for Stamping.
) Contd Duty Sh.
10Sh.
15Sh.
20 Sh.
10 Sh.
20Sh.
40 SCHEDULE - ( ge on on sale ransfer sections 43 to 52 and 64 to 67.
Instrument See Conveyance or T.
Exceeds Sh.
500 but does not exceed Sh.
1,000.
.
.
.
.
.
.
Exceeds Sh.
1000 but does not exceed Sh.1,500.
.
.
.
.
.
.
Exceeds Sh.
1,500 but does not exceed Sh.2,000.
.
.
.
.
.
.
.
And for every Sh.
1,000, and also for any fractional part of Sh.
1,000, in excess of Sh.
2,000.
.
And 12Aof any immovable property (except any debt secured by mortgage or charimmovable property) situated in any municipality-Where the amount or value of the consideration for the sale does not exceed Sh.
500.
.
.
.
.
.
.
.
Exceeds Sh.
500 but does not exceed Sh.
1,000.
.
.
.
.
.
.
.
.
.
76 CAP.
480 Stamp Duty [Rev.
2011 ime for Stamping this Act T if other than that generally or specially provided in rroorr se se aahhccrruuppeehhT transferee.
} T transferee.
Person responsible for Stamping.
) Contd etc., Duty Mortgage, Marketable Security Sh.
60 Sh.
80 Sh.
40 See and Nil.
Sh.
200 SCHEDULE - ( of any by way of ransfer ransfer certied to be a , or by order of, any Instrument sections 43 to 52.
section 53.
see.
Conveyance or transfer of Conveyance or T see Copy or Extract.
.
Exceeds Sh.
1000 but does not exceed Sh.1,500.Exceeds Sh.
1,500 but does not exceed Sh.2,000.And for every Sh.
1,000, and also for any fractional part of Sh.
1,000, in excess of Sh.
2,000.And Conveyance or Tsecurity of any property or of any security.
.
.
.
.
.
.
.
.
.12Breal property between husband and wife.
.
.
.
.
.
13kind not herein before described.
.And 14true copy by Rev.
2011] Stamp Duty CAP.
480 77 of Act days thirty ithin ime for Stamping ovided in this WT if other than that generally or specially pr certication.
esponsible Person rfor StampingThe person for or on whose behalf the copy or extract is made.
) etc.etc., Contd.
- ( Mortgage, Conveyance, Duty Sh.
50 See See and section 50.
SCHEDULE ged for.
.
.
.
.
.
.
, or the transfer for securing the payment or in relation to any annuity Any copy of, or extract from, Instrument public ofcer and not charunder any written law for the timebeing in force relating to court fees.
.
.
.
.
Exemptions-Any copy or extract which a public ofcer is expressly required of any written law to make and to furnish for record in any Government Department or for any public purpose.(2) any register relating to births, baptisms, marriages, adoptions, divorces, deaths or burials.Covenant repayment of moneyor retransfer of stockCovenant upon the original creation and sale thereof.
(1) 78 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible Person r for Stamping ) Contd.
- ( etc Duty Bond, SCHEDULE See duty as em duty in em ad valor in relation to any annuity t-Any separate deed of ad valor , and relating solely to the gage money does not Covenan geable with.
Where the respect of the consideration or mor Instrument Covenant (except upon the original creation and sale thereof) or to other periodical payments.
.
.
.
.
.
.15covenant (not being an instrument chara conveyance on sale or mortgage) made on the sale or mortgage of any propertyconveyance or enjoyment of, or the title to, the property sold or mortgaged, or to the production of the documents of title relating thereto, or to all or any of the matters aforesaid- Rev.
2011] Stamp Duty CAP.
480 79 ime for Stamping this Act T if other than that generally or specially provided in.
The covenantee.} The declarerAll persons executing.
Person responsible for Stamping.
.
) duty Contd em Duty ad valor and , etc.
duty equal to the amount Marketable A of such Sh.200See Duplicate.See SecurityMortgageSh.
200Sh.
200 SCHEDULE - ( em t- Ac.
ad valor.
of any.
registered.
, or the.
.
.
.
.
.
.
.
.
.
Arrangement of any use or trust geable with Instrument.
.
.
.
.
.
.
for securing the payment settlement.
of Arrangement Instrument ea or other the Deeds of Declarationas Deed Deed.
.
exceed Sh.
10.
.
.
.
.
.
.
.
.
.
.
.
.
.
In any other case.
.
.
.
.
.
.
.
.
.
CounterpartDebenturor repayment of moneytransfer or retransfer of stock16of or concerning any property by any instrument, not being a will or any instrument charduty 17kind whatsoever not described in this Schedule and not generally or specially exempted from duty18.under 80 CAP.
480 Stamp Duty [Rev.
2011 that Act.
10 of 2010, s.
44.
ime for Stamping this Act T if other than that generally or specially provided in Before registrationunder The time allowed for stamping the original instrument.
The debtor The person for whose benet the duplicate or counterpart was executed.
Person responsible for Stamping }.
) - Contd , etc., Duty Mortgage Bill of Exchange.
Sh.
3 See and section 68.
See The same duty asthe original instrument.
Sh.
20 SCHEDULE - ( itle Deposit of T Draft for Money.
.
.
.
.
t of any geable with any duty- Instrument For every Sh.
2,000, and also for any fractional part of Sh.
2,000, of the sworn value of the property passing under the deed or (where no property so passed) the amount of composition payable under the deed.
.
.
.
.
.
.
.
.
.
In any other case.
.
.
.
.
.
.
.
Duplicate or Counterpar Where such duty does not amount to.
instrument char Sh.
20.
.
.
.
.
.
.
.
.
.
.
.
.
Deeds.
.
.
.
.
.
.
.
.
19 Rev.
2011] Stamp Duty CAP.
480 81 ovided ime for Stamping this Act T if other than that generally or specially prin esponsible for Person rStamping All persons executing.
) Contd.
, etc., , etc., for a - ( Mortgage Copy or Extract.Marketable Security Duty See and sections 30 and 68.The same duty as on a Conveyanceconsideration equal to the value of the property of greatest value.See See and section 64.
SCHEDULE.
.
.
.
.
rust Land T operty.
.
.
.
.
.
.
.
.
.
.
the Government the and any lease for section 54.
.
.
.
.
.
.
.
.
.
.
see emporary occupation licence Exchange of Pr eign Security T issued underLands Acta term of one year or less granted underAct.
Instrument And Exemption- Equitable Mortgage20 ExtractFor 82 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible for Person r Stamping The lessee or licensee.
The lessee or licensee.
) Contd.
- ( , etc., and section and section 31.
eement.
Duty Mortgage Agr Deed Policy of Insurance.
See 68.
See See See Sh.
20 Sh.
10 SCHEDULE ovided for - eement.
.
.
.
.
ge or Further SecurityAgr chase.
.
.
.
.
.
.
.
.
.
.
.
.
.
e Pur Instrument Further Char Hir Instrument not otherwise prInsuranceLease or Licence-not exceeding one yearWhere the whole amount payable does not exceed Sh.
2,000.
.
.
.
.
And for every Sh.
1,000, and also for any fractional part of Sh.
1,000, in excess of Sh.
2,000.
.
.
.
.
.
.
.
.
.
.
.
.
.(2) For any denite term of not less than one year but not exceeding three years, where the rent is at a rate or.
21 (1) For any denite term Rev.
2011] Stamp Duty CAP.
480 83 ime for Stamping this Act T if other than that generally or specially provided in The lessee or licensee.}The lessee or licensee.
The lessee or licensee.
Person responsible for Stamping } }.
) Contd - ( Duty Sh.
5 Sh.
10 Sh.
10 SCHEDULE , , , for Instrument average rate-for every Sh.
500, and alsoSh.
500, of such rate or average rate.
.
.
.
.
.
.
.
The lessee or licensee.every Sh.
1,000, and also for any fractional part of Sh.
1,000,of such rate or average rate.
.
.
any indenite term, where the rent is at a rate or average rate-for every Sh.
500, and also for any fractional part of Sh.
500, of such rate or average rate.
.
.
.
.
.
.
.
.
Not exceeding Sh.
2,000 a yearExceeding Sh.
2,000 a year(3) For any other denite term, or Not exceeding Sh.
2,000 a year for any fractional part of 84 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible for The licensee.
Person r Stamping ) Contd.
.
- ( eement.
of Attorney Duty Bill of Exchange.Agr eement.
Power See Agr SCHEDULE Sh.
20 Sh.
500 See See See , for Act.
.
.
.
.
.
.
Attorney.
.
.
the Government Lands sections 55 to 63.edit.
.
.
.
.
.
.
, assignment or disposition rust Land see emporary occupation licence issued and any lease for a term of T And ransfer Instrument Exceeding Sh.
2,000 a yearevery Sh.
1,000, and also for any fractional part of Sh.
1,000, of such rate or average rate.
.
.
.
.TunderActone year or less granted underthe Marketable Security-T of a marketable security of any description: Letter of Cr Letter of Power of.
(4) Letter of Guarantee.
.
.
.
.
Letter of Indemnity.
.
.
.
.
22(1) Rev.
2011] Stamp Duty CAP.
480 85.
ime for Stamping this Act T if other than that generally or specially provided in Before delivery , gnee , assi.
ransferee he tT etc.
The deliveror Person responsible for Stamping }.
) , etc.
Contd , etc.
- ( Duty ConveyanceMortgage See See Sh.
100 Sh.
50 Sh.
100 Sh.
150 Sh.
200 SCHEDULE , including Instrument (a) upon a sale thereof.
.
.
.
.
.
.
(b) upon a mortgage thereof.
.
(c) in any other case than a sale or mortgage.
.
.
.
.
.
.Where the money thereby secured does not exceed Sh.
10,000.
.
.
.Where the money thereby secured exceeds Sh.
10,000 but does not exceed Sh.
20,000.
.
.
.
.
.
.Where the money thereby secured exceeds Sh.
20,000 but does not exceed Sh.
30,000.
.
.
.
.
.
.
Where the money thereby secured exceeds Sh.
30,000 but does not exceed Sh.
40,000.
.
.
.
.
.
.
(2) Marketable security a debenture, transferable by delivery- 86 CAP.
480 Stamp Duty [Rev.
2011 Act.
ime for Stamping Before delivery T if other than that generally or specially provided in this Before delivery of theRegistrar of Companies.
.
The deliveror All persons executing.
Person responsible for Stamping }.
) Contd - ( SCHEDULE Duty Settlement Sh.
50 Sh.
2 See Sh.
2,000 Sh.
2,000 of a Articles , being such of Association And see sections 64 to 67.
Association.
.
.
.
.
.
.
.
Memorandum.
of 23 Instrument And for every Sh.
10,000, and also for any fractional part of Sh.
10,000 by which the money thereby secured exceeds Sh.
40,000.(3) Marketable securitysecurity as last aforesaid, given in substitution for a like security duly stamped-For every Sh.
10,000, and also for any fractional part of Sh.
10,000, of the money thereby securedMarriage Settlement.
.
.
.
.
.
company-(1) If accompanied by the (2) If not so accompanied.
.
.
.
.
.
Rev.
2011] Stamp Duty CAP.
480 87 Act 8 of 1997, ime for Stamping ovided in this 10 of 2010, s.
44.
T if other than that generally or specially pr esponsible for Person rStamping ) Contd.
- ( Duty Sh.
300 Sh.
1 Sh.
1 SCHEDULE e and , or ged with duty)- , or principal, or (except a marketable Mortgage, Bond, Debentur.
Instrument formed for prot.
.
.
.
.
.
.
.
.
.
.
.24Covenantsecurity specially charprimary security (other than an equitable mortgage) for the payment or repayment of money-For every Shs.
1,000, and also for any fractional part of Shs.
1,000 of the amount secured.
.
.
.
.
.
.(2) Being a collateral, or auxiliarysubstituted security (other than an equitable mortgage), or by way of further assurance for the above mentioned purpose, where the principal, or primary security is duly stamped-For every Shs.
1,000, and also for any fractional part of Shs.
1,000, of the amount secured.
.
.
.
.
.
(3) Memorandum of any company not (1) Being the only 88 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr.
esponsible for Stamping ) The same duty as a principal security for such further money Contd.
Person r - ( Duty SCHEDULE Sh.1 Sh.
0.50 , assignment or ransfer Instrument (3) Being an equitable mortgage-For every Shs.
1,000, and also for any fractional part of Shs.
1,000, of the amount secured.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Tdisposition of any mortgage, bond debenture or covenant (except a marketable security), or of any money or stock secured by any such instrument or by any judgement- For every Shs.1,000, and also for any fractional part of Shs.1,000, of the amount transferred, assigned or disposed, exclusive of interest which is not in arrears.
.
.
.
.
.
.
.
.
.
.
And also where any further money is added to the money (4) already secured.
.
.
.
.
.
.
.
.
.
.
Rev.
2011] Stamp Duty CAP.
480 89 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible for Stamping ) Contd.Person r - ( SCHEDULE Duty Sh.0.50 ge, , or e, release, dischar , resurrender Instrument surrenderrenunciation of any such security as aforesaid, or of the benet thereof or of the money thereby secured-For every Shs.
1,000, and also for any fractional part of Shs.
1,000, of the total amount or value of the money at any time secured.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(5) Reconveyanc 90 CAP.
480 Stamp Duty [Rev.
2011 ime for Stamping if T other than that generally or specially provided in this Act All persons executing.
.
) Person responsible for Stamping } Contd SCHEDULE - (Duty Sh.
20 Sh.
20 Instrument Partition, Instrument of - Where the amount or value of the separated share or shares of the property does not exceed Sh.
2,000And for every Sh.
1,000, and also for any fractional part of Sh.
1,000, in excess of Sh.
2,000.
25 Rev.
2011] Stamp Duty CAP.
480 91 ime for Stamping this Act T if other than that generally or specially provided in , or in the All persons executing.The insurercase of a policy issued outside Kenya and sent to the insured or hisagent, the insured.
Person responsible for Stamping} } , etc., etc.
Duty ConveyanceMortgage Sh.
1,000Sh.
200See See Sh.5Sh.10.
.
.
.
.
.
.
.
- section 71.
see Policy of Marine Insurance:Where the premium or Instrument And Partnership(1) Instrument of.
.
.
.
.
.
.
.
.
.
.
(2) Instrument of dissolution of, including an agreement to dissolve, without consideration(3) Instrument of dissolution of, including an agreement to dissolve, with consideration.
.
.
.
.
.
.
Pawn or Pledge Policy of Insurance(1) (a) consideration does not exceed the rate of one-eighth per centum of the sum insured, but excluding reinsurance.
.
.
.
.
.
.
.
.
.
.
(b) Reinsurance.
.
.
.
.
.
.
.
.(c) In any other case-.
.
26 27 92 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr case of a policy , or in the esponsible for Stamping ) Contd.
Person r The insurer issued outside Kenya and sent to theinsured or his agent, the insured.
- ( Duty SCHEDULE Sh.
5 Sh.
7.50 Where the insurance is Instrument every Sh.
10,000, and also for any fractional part of Sh.
10,000, of the sum insured.
.
.
.
.
.
.
.
.
.
.
(ii) For time-Where the insurance is made for any time not exceeding six months, for every Sh.
10,000, and also for any fractional part of Sh.
10,000, of the sum insured.
.
.
.
.
.
.
(B) made for any time exceeding six months but not exceeding twelve months, for every Sh.
10,000, and also for (i) For or upon any voyage, for (A) Rev.
2011] Stamp Duty CAP.
480 93 Act ime for Stamping ovided in this T if other than that generally or specially pr.
esponsible for Stamping The insurer ) Contd.Person r - ( SCHEDULE Duty Sh.
10 Sh.
7.50 , or fects Accident.
.
.
.
.
.
.
t of Sh.
10,000, of the sum insuredExemption- , if made or executed outside sections 72 to 81.
Instrument Policy of insurance on baggage or personal and household efonlyKenya.seePolicy of Life Insurance:For every Sh.
10,000 and also for any fractional part of Sh.
10,000, of the sum insured.
.
.
.
.
.
.and policy of insurance for any payment agreed to be made during the sickness of any person, or his incapacity from personal injury any fractional par And (2) And see sections 72, 82 and 85.(3) Policy of Insurance against 94 CAP.
480 Stamp Duty [Rev.
2011 ime for Stamping if T other than that generally or specially provided in this Act.
.
The insurer The insurer.
) Person responsible for Stamping } Contd SCHEDULE - ( Duty Sh.
5 Sh.
40 Sh.40 not.
.
.
.
or other , shall Attorney , nor , nothing shall be Instrument Any other Policy of Insurance Power or Letter of instrument in the nature thereof- by way of indemnity against loss of, damage of or to any propery:(a) against railway or air accident, valid for a single journey only(4) specically mentioned.
.
.
.
.
.
.
.Exemption-Letter or cover or engagement to issue a policy of insurance:Provided that unless such letter or engagement is duly stamped for such policyclaimable thereunderit be available for any purpose except to compel the delivery of the policy therein mentioned.
(b) in any other case.
.
.
.
.
.
.
.
28 Rev.
2011] Stamp Duty CAP.
480 95 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible for Stamping ) The person executing.The person executing.The person executing.
Contd.Person r - ( a ed s forput a om y.
cc ut te , dee Duty m anc sa y SCHEDULE e Bill of Exchange he Sh.200 Sh.20See T Convon the consideration.
).
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
or valuable Deleted by 8 of 2008, s.
46 omissory Note( Instrument When given fconsideration and authorising the attorney to sell any immovable propertybefore described-In respect of each donorletter of attorney-In respect of each person revokingPr29.
(1) (2) Of any kind whatsoever not herein-(3) Revocation of any power or 96 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this T if other than that generally or specially pr esponsible for Stamping ) All persons executing.
All persons executing.
Contd.
Person r - ( , etc.
, etc.
.
Duty Conveyance Mortgage SCHEDULE See See Sh.
50 Sh.
50 and seeCancellation of any pecuniary geable on any ged or char of any use or trust of bona de Settlement- Instrument Release or Renunciationproperty or of any right or interest in any property -(1) Upon a sale.
.
.
.
.
.
.
.(2) By way of security.
.
.
.
.(3) In any other case.
.
.
.
.
.Revocationany property by any writing not being a will.
.
.
.
.
.
.
.
.
.
.
.
.
.
Any instrument, whether voluntary or upon any good or valuable consideration, other than a consideration, whereby any denite and certain principal sum of money.
31.
32.
30 (whether char Rev.
2011] Stamp Duty CAP.
480 97 Act ime for Stamping ovided in this T if other than that generally or specially pr.
esponsible for Stamping ) The settlor Contd.Person r - ( Duty SCHEDULE Sh.
20 - , is settled in any manner Instrument immovable property or not, or to be laid out in the purchase of immovable property or not), or any denite and certain amount of stock, or any securitywhatsoever(1) In respect of a settlement of any marketable security or of any interest secured by a bond, mortgage or policy of insurance, for every Sh.
2,000, and also for any fractional part of Sh.
2,000, of the amount or value of the property settled or agreed to be settled.
.
.
.
.
.
.
.
.
.
.
.
.(2) In any other case, for every Sh.
2,000, and also for any fractional part of Sh.
2,000, of the amount or value of the 98 CAP.
480 Stamp Duty [Rev.
2011 Act ime for Stamping ovided in this Before issue.
T if other than that generally or specially pr The surrenderee.
esponsible for Person r Stamping The company issuing.
) Contd.
- ( , etc.
Duty , etc.
.
SCHEDULE Bond Lease Declar Conveyance Declaration.
Sh.
40 The same duty as that payable in respect of a marketable security transferable by delivery computed on the amount of the consideration.See Sh.
20See See See See , issued.
.
.
.
.
.
.
.
to bearer Annuity arrant sections 92 to 94.
of any kind whatsoever geable with duty as a sections 89 to 91.eW Deed of dower executed on the occasion of a marriage between persons professing the Muslim faith.seeKenya.
see ender Shar in Surr emporary Occupation Licence ransfer.
.
.rust.
.
.
.
Instrument settled.
.
.
.
.
.
.
.
.
.
.
.
.
Exemption- And.
And Superannuation.
33 34 property settled or agreed to be not char conveyance on sale or mortgage.
Exemption- Surrender of lease, when such lease is exempt from duty TTT Rev.
2011] Stamp Duty CAP.
480 99 General eXemptIons (1) Acknowledgement of Debt.
(2) Adoption Deed.
(3) Afdavit or Statutory Declaration.
(4) Agreement relating to the sale of a Government security or share in an incorporated company or other body corporate.
6 of 1994.
(5) Appraisement.
(6) Apprenticeship Deed.
(7) Authority to adopt.
(8) Award.
(9) Bill of Lading.
(10) Certicate of shares or share certicate.
(11) Charter Party.
(12) Delivery Order.
(13 Instrument of Divorce.
(14) Letter of Allotment of shares.
(15) Letter of Licence, that is to say, an agreement between a debtor and his creditors that the creditors shall for a specied period suspend their claims and allow the debtor to carry on business at his own discretion.
(16) Notarial Act.
(17) Note of Protest by Master of ship.
(18) Protest by ship Master.
(19) Proxy.
(20) Shipping Order.
(21) Valuation.
CAP100.
480 Stamp Duty [Rev.
2011 [Subsidiary] SUBSIDIARY LEGISLATION Classes of Instruments directed to be exempted from the Provisions of the this Act under section 106 Exemptions of individual instruments or individual seris of instruments are not referenced 1.
Charges of land (both legal and equitable) and discharges of charges and reconveyances of mortgaged land, executed in the following circumstances- (a) the land has been surrendered to the Crown for the purpose of a regrant of the same (subject to any adjustment of area resulting from resurvey, relinquishment of land for public purposes or addition of L.N.
461/1958.
adjoining Crown land), and the land has been so regranted; and (b) the land was the subject of a charge or mortgage (legal or equitable), and the discharge or reconveyance thereof was made to enable the chargor or mortgagor to surrender the land and on condition that a charge should be imposed on the same land (subject as aforesaid) between the same parties and to secure the same amount in replacement of the earlier charge or mortgage, and the charge has been so reimposed.
2.
Subleases of land and surrenders of subleases executed in the following circumstances - (a) the land has been surrendered and regranted in manner specied in paragraph 1 (a) above; and (b)the land was the subject of a sublease, and the surrender thereof was made to enable the sublessor to surrender the land to the Crown and on condition that a sublease should be granted in respect of the same land (subject as aforesaid) between the same parties and at the same rent in replacement of the earlier sublease, and the sublease has been granted: Provided that where the new sublease contains an addition of adjoining Crown land, in execution of a duly stamped agreement to sublease such addition, this exemption shall extend to the new sublease, notwithstanding that the rent thereunder has been increased beyond that reserved by the earlier lease, if it has been increased by the amount of the rent agreed to be paid for the additional land.
3.
Mortgage bonds issued by the Nairobi City Council.
4.
Grants of land in the municipality of Nairobi to the Governing Council of the Royal Technical College of East Africa.
Rev.
2011] Stamp Duty CAP.
480 101 [Subsidiary] 5.
Transfer documents in connexion with any stock or bonds, interest warrant or other document required for the purposes of any stock or bonds L.N.
10/1959.
issued made or created under the provisions of section 97 of the Municipalities this Act.
L.N.67/1959.
6.
Instruments executed by the Commissioner of Lands declaring the rents payable, in pursuance of the provisions of section 29 of the Government L.N.
254/1960.
Lands Act, in respect of agricultural land for the second period prescribed by section 28 of the Government Lands Act.
Cap.
136 (1948).
7.
Bills of exchange or promissory notes drawn or expressed to be payable or actually paid or endorsed or in any manner negotiated in Kenya for L.N.
344/1961.
the purpose of nancing within the East African currency area the marketing (including the processing for marketing) of coffee, cotton, pyrethrum, tea, sisal Cap.280.
or cloves, and which are - (a) payable otherwise than on demand or at sight or on presentation L.N.
676/1961.
or within three days after date or sight; and (b) denominated in East African shillings; and (c) payable in the East African currency area; and (d) drawn on or payable to a bank licensed to operate in the East African currency area and with the prior approval of the said bank.
8.
All promissory notes drawn by the Land Development and Settlement Board.
9.
Instruments to which Lands Ltd.
is a party.
10.
Discharges of charges, reassignments of mortgages and discharges L.N.
750/1961.
of memoranda of equitable mortgages or charges by deposit if title made or given by the Commissioner of Income Tax.
11.
Instruments to which the Kenya Tea Development Authority or its L.N.
628/1963.
tea factory companies are a party.
L.N.
662/1963.
12.
Instruments to which the Coffee Research Foundation is a party.
13.
Instruments to which the Royal Tropical Institute is a party.
L.N.
90/1964, 14.
Mortgages and charges made between the Land and Agricultural L.N.
132/1977.
Bank of Kenya and the Agricultural Development Corporation.
L.N.
207/1964.
15.
Bills of exchange or promissory notes drawn or expressed to be L.N.
219/1964.
payable or actually paid or endorsed or in any manner negotiated in Kenya for the purpose of nancing within Kenya the marketing (including the processing L.N.
144/1966.
for marketing ) of hides and skins, and which are- CAP102.
480 Stamp Duty [Rev.
2011 [Subsidiary] L.N.
164/1966.
(a) payable otherwise than on demand or at sight or on presentation or within three days after date or sight; and (b) denominated in Kenya Shillings; and (c) payable in Kenya; and (d) drawn on or payable to a bank licenced to operate in Kenya and with the prior approval of that bank.
16.
Lease and tenancy agreements under which the United States Agency for International Development is the tenant or lessee.
17.
Instruments pertaining to indemnities taken by the Government in respect of cheques reissued by the Government.
L.N.
300/1968.
18.
Promissory notes drawn by the Agricultural Finance Corporation for the purpose of nancing maize or wheat production in Kenya.
L.N.
259/1969.
19.
Instruments to which Kenyare Properties Ltd.
is a party.
20.
Loan agreements, covenants, bonds, debentures, mortgages or other L.N.
27/1976.
instruments under which the Government is the primary debtor.
L.N.
172/1978.
L.N.
147/1979.
Rev.
2011] Stamp Duty CAP.
480 103 [Subsidiary] Regulations under section 119 THE STAMP DUTY REGULATIONS 1.
These Regulations may be cited as the Stamp Duty Regulations.
L.N.
368/1958, L.N.
471/1958, 2.
The stamp duty with which any instrument specied in the First L.N.
159/1959, Schedule is chargeable may be paid and denoted by an adhesive revenue L.N.
239/1967, stamp afxed, or (subject to the provisions of regulation 3) by means of aL.N.
96/2009.
revenue stamp impressed by a franking machine, on the instrument; but save as aforesaid, the stamp duty with which instruments are chargeable shall be paid Citation.
and denoted by an embossed stamp which shall be embossed on the instrument under the direction of a collector in such manner as he may require.
Duties, how to be 2A.
(1) Notwithstanding anything contained in regulation 2, the Senior paid.
Collector of Stamp Duties may enter into an agreement with a banker for the composition of the stamp duty on unstamped receipts in respect of withdrawals from savings bank accounts on the following conditions (a) that the receipts shall be given on forms to be supplied or adopted by the banker; (b) that the banker shall levy upon or charge to the person by whom the receipts are given the stamp duty mentioned in the Schedule to the Act; (c) that the banker shall pay on or before the last day of each month to the Senior Collector of Stamp Duties the amount due and collected as duties on the unstamped receipts given during the immediately preceding month, and shall render with each payment an account in such form as the Senior Collector of Stamp Duties may require; (d) that the banker shall deposit with the Senior Collector of Stamp Duties, as security for the due payment of any moneys payable under paragraph (c), such sum (if any) as the Senior Collector of Stamp Duties may direct.
(2) Receipts given on forms supplied or adopted by a banker in accordance with this regulation shall be deemed to be duly stamped.
3.
(1) The Senior Collector of Stamp duties may, by licence under his hand, authorize any person to impress revenue stamps on any instrument specied in the First Schedule by means of a revenue franking machine.
(2) A licence issued under this regulation shall be subject to such conditions as the Senior Collector of Stamp Duties may impose.
Revenue franking (3) An impression indicating the payment of duty made by a revenue machines.
franking machine used under a licence under this regulation shall contain the true date of the making of the impression.
CAP104.
480 Stamp Duty [Rev.
2011 [Subsidiary] (4) The franking of any instrument specied in the First Schedule by any duly authorized person as provided for in this regulation, if done in accordance with the terms of this regulation and of the licence, shall have the same effect as cancelling an adhesive revenue stamp on the date and to the value indicated by the franking.
(5) Any person, other than a person to whom a licence has been issued under this regulation, who impresses or causes to be impressed a revenue stamp on any instrument, and any person, being a person to whom a licence has been issued, who fails to comply with any condition of the licence, shall be guilty of an offence and liable to a ne not exceeding two thousand shillings.
4.
All instruments which are required to be denoted under section 16 of the Act shall be so denoted by having afxed thereto or impressed thereon, in addition to the proper stamp or stamps, a particular stamp, on which a collector shall denote the amount of the duty paid in respect of the principal instrument.
Denoting stamps.
5.
(1) An executed instrument, the adjudication of which is desired under either section 17 or subsection (3) of section 52 of the Act, shall be submitted to the collector, and in all cases a plain copy of the instrument shall accompany the original instrument.
(2) Where a number of transfers of stocks, shares or marketable securities Adjudication of between the same parties are presented for adjudication, then, notwithstanding stamp duty.
the provisions of paragraph (1), a copy of one transfer may be furnished and a list of the others, showing for each the consideration and the number and description of the shares or securities or the amount and description of the stock.
(3) An application for adjudication shall be in Form A in the Second Schedule to these Regulations, and if made under section 17 of the Act shall be accompanied by the fee therein specied.
(4) Copies supplied with the application will not be returned.
(5) The collector may require such further information to be given to him as he may deem necessary in any particular case.
(6) When the duty has been assessed, a notice of provisional assessment shall be sent to the applicant, who, if he agrees to the amount, shall pay the duty in the manner directed by the notice.
(7) The instrument shall then be stamped with the duty assessed and with the adjudication stamp, and shall be returned to the applicant.
(8) If the collector considers that the instrument is already duly stamped, or is not liable to any duty, he shall cause the adjudication stamp to be impressed and shall return the instrument to the applicant.
Rev.
2011] Stamp Duty CAP.
480 105 (9) If the applicant dissents from the proposed assessment, he may [Subsidiary] submit to the collector a statement of his reasons for dissenting and his view of the basis upon which the instrument should be stamped.
6.
An instrument rst executed at any place out of Kenya shall bear a certicate endorsed on the face thereof, signed by the person presenting it, in the following form Certied that this instrument was rst received in Kenya on the day of , 19.
7.
An instrument presented for stamping by leave under section 20 of the Certicates of time.
Act shall be accompanied by an application in Form B in the Second Schedule to these Regulations.
8.
An instrument chargeable with duty under section 49 of the Act or as an instrument of dissolution of partnership shall be accompanied by a statutory declaration as to the apportionment of consideration in Form C in the Second Stamping out of time.
Schedule to these Regulations.
9.
A transfer of a marketable security not quoted on any stock exchange shall be accompanied by a certicate of value in Form D in the Second Schedule Contracts chargeable to these Regulations.
as conveyances on sale.
10.
Where an instrument being a security for the payment or repayment of an unlimited amount of money has been stamped ad valorem and is later presented for payment of further ad valorem duty in accordance with section 70 of the Marketable Act, there shall at the same time be lodged a certicate in the following form securities.
I certify that the amount at any time owing by to Certicate on (a) did not exceed until the unstamping day of 19 ; instrument.
(b) has not at any time exceeded the sum of ; and I request that further stamp duty may be impressed on the instrument on the day of , 19 , to (a) If the amount cover a total advance of has not yet been *.Signature exceeded cancel .Address these words.
., 19 Date (b) If the advance The Collector of Stamp Duties, Nairobi/Mombasa.
has already been exceeded cancel * To be signed by the mortgagee or by the manager of the bank making these words.
the advance.
11.
(1) The owner of spoiled or misused stamps, namely, the person for whose use and business the stamps were purchased, shall apply in writing in Form E in the Second Schedule to these Regulations within the appropriate CAP106.
480 Stamp Duty [Rev.
2011 [Subsidiary] period set out in Part V of the Act.
Procedure for (2) The spoiled instrument shall be surrendered to the collector for obtainable allowance destruction or for disposal in such manner as he may direct.
for spoiled and misused stamps.
(3) In all cases of bills of exchange signed by both drawer and acceptor and in cases where signed cheques, receipts, promissory notes, bills at sight or on demand, and accepted bills have been out of the possession of the signers, allowance shall be made upon production of duly stamped and completed substituted instruments correcting some error or omission in the spoiled instruments.
(4) Spoiled instruments shall be presented in a complete state without mutilation.
(5) No refund shall be made in respect of stamps which have been cut or otherwise removed from material.
12.
No allowance shall be made for any spoiled adhesive revenue stamp representing a fee paid in pursuance of the provisions of any Act specied in the Third Schedule to these Regulations or of any rules or regulations made under any such Act, being a fee collected by means of stamp afxed to any form prescribed by any such Act, rules or regulations.
No allowance for spoiled stamps in FIRST SCHEDULE (r.2) certain cases.
Instruments upon which stamp duty may be paid and denoted by means of adhesive revenue stamps or revenue stamps impressed by a franking machine.
Agreement or any Memorandum of an Agreement under hand only and chargeable with duty of Sh.
1.
Bill of exchange payable on demand or at sight or on presentation or within three days after date or sight.
Bill of Exchange and Promissory Note, if drawn out of Kenya.
Bond, etc., chargeable with duty not exceeding Sh.
10.
Cancellation, Instrument of.
Cheque.
Contract Note.
Copy or Extract.
Duplicate or Counterpart.
Instrument registrable under the Chattels Transfer Act (Cap.
28).
Lease for a term of one year or less granted under the Trust Land Act (Cap.288).
Letter of Credit.
Letter of Guarantee.
Letter of Indemnity.
Policy of Insurance, except any policy chargeable with duty as an annuity.
Receipt.
Rev.
2011] Stamp Duty CAP.
480 107 [Subsidiary] Any instrument requiring or capable of registration, being an instrument relating to the registration of transactions or devolution affecting land registered under any law relating to the registration of land in the special areas.
Instruments registrable under, or drawn and executed under the provisions of the Companies Act.
SECOND SCHEDULE Form A (r.
5) To: The Collector of Stamp Duties, P.O.
Box 30089, P.O.
Box 80053, Nairobi.
or Mombasa.
applICatIon for aDjuDICatIon of stamp Duty I hereby apply for the adjudication of the stamp duty payable on the undermentioned instrument(s), a plain copy of which is enclosed (together with the fee of Sh.
100*):- Description of Date Instrument Parties 2.
I certify that, except as set forth in the attached memorandum, all the facts and circumstances affecting the liability of the instrument(s) to duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein in pursuance of the provisions of section 10 of the Act.
Date.
Signature.
Name in block capitals.
.
Address.
Note.
- The nature of the further information usually required is set out in the following pages and must be given where appropriate.
* Delete if application is made under section 52 (3) of the Act.
aGreement for sale Where applicable, complete Form C in the Seconde Schedule to the Stamp Duty Regulations.
CAP108.
480 Stamp Duty [Rev.
2011 [Subsidiary] FORM A - (Contd.) ConveyanCe on sale Where the property is sold subject to State the amount owing for principal a mortgage.
(and interest, if any, if the purchaser undertakes payment thereof) at the date of the conveyance.
Generally, if property is sold subject State the amount thereof.
to, or in consideration of, the taking over or release of any debt or pecuniary liability.
ConveyanCe or transfer (InCluDInG settlement, DeClaratIon of trust, etC.) operatInG as a voluntary DIsposItIon Inter Vivos Where the subject matter is land.
Furnish a full description of the land with any improvements thereon and particulars of all sub-leases and tenancies with rents and estimated outgoings and names of tenants.
The question of value will be referred to the Government Valuer.
Where the subject matter is Furnish a valuation as indicated below stocks, shares or other marketable under the heading Settlement.
securities.
With a voluntary settlement, produce duly stamped transfers of any securities transferable by deed subject to stamp duty executed by the settlor in favour of the trustees.
Where the securities have been vested in the trustees otherwise than by direct transfer from the settlor, particulars should be given.
Where the subject matter is property Furnish details and reasonable of any other description, e.g.
evidence of value and give the ages reversions, life policies, furniture.
of the parties concerned where the subject matter is are version or a life interest.
ConveyanCe or transfer on any oCCasIon eXCept sale, mortGaGe or voluntary DIsposItIon If the conveyance or transfer is made Produce the deed of on the occasion of the appointment of appointment.
a new trustee of an existing trust.
Rev.
2011] Stamp Duty CAP.
480 109 FORM A - (Contd.) [Subsidiary] If the conveyance or transfer is Produce the settlement.
made for effectuating a settlement.
Instrument of DIssolutIon of partnershIp, whether aGreement or ConveyanCe In all cases.
Produce a copy of the balance sheet or statement of account as at the date of dissolution between the partners, showing - (a) the amount of the liabilities (separating mortgages from current trade liabilities); (b) the liquid assets (stock in- trade, cash and book debts); (c) (if the fact is not disclosed by the instrument) the share of the outgoing partner in the partnership assets; and (d) any immovable property held by or on behalf of the partnership.
mortGaGe, etC.
Note.
- A security for advances without limit cannot be adjudicated.
Where a trust deed secures payment Produce the debentures executed of debentures.
and duly stamped.
Where it is claimed that collateral, Produce the principal or primary auxiliary, additional or substituted security, or other evidence that it is security duty only is payable.
stamped with full duty.
transfer of mortGaGe If the transfer is made on the occasion Produce the deed of appointment.
of the appointment of a new trustee of an existing trust.
In all cases.
State the amount of interest in arrear (if any) at the date of transfer.
settlement (If not wIthIn heaDInG III) CAP11 0.
480 Stamp Duty [Rev.
2011 [Subsidiary] FORM A - (Contd.) Where stocks and/or securities are Furnish particulars of the stocks and settled, whether in possession or securities if not specied in the reversion, and whether the interest settlement and in any case produce settled is contingent or vested.
a statement of the value of each of the several items as at the date of Where a share only in a settlement - reversionary interest in (a) from prices quoted in ny a trust fund is settled.
recognized stock and share list; (b) where there is no quotation, completeand attach Form D in the Second Schedule to the Stamp Duty Regulations.
Where a settlor covenants to settle In addition to the above particulars other property which he may then of the investments of the fund at the have, but which is not specically date of settlement, state the settlors mentioned.
interest therein.
Where the settled fund comprises a State whether the settlor was at policy of life insurance - the date of the settlement entitled in possession or reversion, or in default of the exercise of a power of appointment, to any money, stocks or shares not specied in the deed, and give as above particulars and value of such property.
(a) if the settlement (or any other (a) State the amount of any bonuses instrument) contains provision added.
for keeping the policy on foot; (b)Produce a certificate of the (b) if there is no such provision.
surrender value from the insurance company.
Note.
- Particulars of the value of unsold immovable property brought into settlement, whether subject to a trust for sale or not, need not be furnished.
speCIal eXemptIons Where it is claimed that an instrument State the section of the particular is not chargeable with duty by reason Act conferring the exemption, and of an exemption not arising under the give an explanation of thegrounds Stamp Duty Act.
for claiming that theinstrument falls within it.
Rev.
2011] Stamp Duty CAP.
480 111 [Subsidiary] Form B (r.7) To: The Collector of Stamp Duties, P.O.
Box 30089, P.O.
Box 80053, Nairobi.
or Mombasa.
applICatIon for leave to stamp out of tIme (Parties).to.
I hereby certify that the annexed instrument was rst executed on the .day of., 19.
The reason(s) why this instrument was not presented for stamping in due time is/are:- Signed.
Name of Applicant in block capitals.
.
Postal Address.
.
Date.
for offICIal use only Leave Duty Penalty Date Collectors Granted Sh Assessed Signature Refused Sh CAP11 2.
480 Stamp Duty [Rev.
2011 [Subsidiary] and fully at the date.
8) Apportioned Consideration Sh.
cts.
.
.
.
.
.
.
.
.
.
.
.
.
.
respect on of severance plant plant paid in every be xed xed in respect instrument are of actual will and and.
.
further duty no ) ransferred.
etary Act.
T which , stock-in-trade and other which shown above of improvements improvements of , , , the Secr Asset to be respect of passing and so passing by manual s and other investments respect , viz:.
particulars which was not in a state in property property in the.
that TION (r machinery machinery immovable immovable and the conveyance, transfer or assignment .property capable delivery which duty will be paid on the transfer and evidencing the sale will be produced.
declare or machinery All All a) (b) Loose plant and machinery (c) Cash in hand .(d) Cash at bank on current account.(e) Bills, Notes, etc.(f) Shares, debenture(g) (h) Goodwill.(i) Benet of contracts.(j) Patents, designs, trade marks, licences, etc.(k) Book debts due to the vendor(l) Cash on eposit.(m) Other property on It , in the case of a Company lara C OF CONSIDERA e and sincerely Dy ry represtents plant Amount of or Consideration tut a Sh.
cts.
.
.
.
.
.
t TIONMENT s APPOR , viz: of.
do solemnly TEMENT to loose plant and machine Ao be made by any party to the Instrument, or T ( apportioned of.
Ltd.) Particulars of Consideration ion.
.
ST.
OTE.-Every question must be answered.
If the answer is Nil, this fact must be stated.
, and that no part of the value FORM C ebentures NI,.
(Secretary .Liabilities of the vendor assumed by the purchaser.
Other considerat I make this Declaration conscientiously believing the same to be true and according to the Oaths and Statutory Declarations VI.
Cash.II.
Shares.
.
.
.
.
.
.III.
D.
.IV.
.
.
.
truly stated of the sale or dissolution.
Delared at This day of 19 Before me, Rev.
2011] Stamp Duty CAP.
480 113 [Subsidiary] Form D (r.
9) To: The Collector of Stamp Duties, P.O.
Box 30089, P.O.
Box 80053, Nairobi.
or Mombasa.
CertIfICate on transfer of CertaIn marketable seCurItIes I hereby certify that to the best of my knowledge and belief- (a) the transaction effected by the transfer of shares in dated 19 between and represents a bona de sale between a willing vendor and a willing purchaser; (b) the value of one ordinary/preference share in on the 19 was Sh.
Date.
Signature of Company Auditor.
Name in block capitals.
Postal Address.
.
_ Form E (r.11) (To be submitted in duplicate) To: The Collector of Stamp Duties.
P.O Box 30089, P.O Box 80053, Nairobi.
or Mombasa.
applICatIon for allowanCe for spoIleD or mIsuseD stamps I HEREBY APPLY for an allowance for stamps in respect of the instruments set out below.
2.
I HEREBY CERTIFY that I am the owner of the stamps and that they were purchased by me.
List of Instrumments Value of Stamp (For Ofcial use only) (One per line) (Notes Collectors Remarks (1) and (2) (Note (3)) 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
CAP11 4.
480 Stamp Duty [Rev.
2011 [Subsidiary] FORM E - (Contd.) notes: (1) Each instrument must be numbered in red with the number given to it above.
(2) Where a bank submits a number of blank cheques, they may be entered as one item.
(3) References in this column are to sections of the Stamp Duty this Act, which, for ease of reference, are reproduced on the back of this form.
Date.
Signed.
Name in capital letters.
Name of Firm in capital letters.
Postal Address.
for offICIal use only The instruments in respect of which the application has been refused are returned herewith.
A remittance for those approved will follow in due course.
Date.
.
Collector of Stamp Duties.
THIRD SCHEDULE (r.
12) 1.
The Trustees (Perpetual Succession) Act (Cap.
164).
2.
The Government Lands Act (Cap.
280).
3.The Land Titles Act (Cap.282) 4.
The Registration of Titles Act (Cap.
281).
5.
The Registration of Documents Act (Cap.
285).
6.
The Mining Act (Cap.
306).
7.
The Water Act (Cap.
372).
8.
The Public Roads and Roads of Access Act (Cap.
399).
.
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