Kenya Revenue Authority (KRA) has directed Kenyans to pay all land transactions attracting stamp duty through the government's uniform pay bill, 222222, as part of the latest changes to enhance service delivery.
In a notice issued by the Ministry of Lands on Tuesday, KRA noted that the move would ensure that the payment of stamp duty for land transactions is seamless.
Stamp duty is a tax levied on various transactions such as the transfer of properties, shares and stocks. It is charged on instruments such as cheques, receipts, marriage licenses, property and land transactions.
The payment is made at different rates depending on the nature of the instrument.
The directive is also in line with President William Ruto's orders on all government funds being remitted through pay bill 222222 to streamline financial flows and reconcile accounts for effective management.
"In order to make the payment of stamp duty for land transactions a seamless process, the Kenya Revenue Authority has now made it possible for the public to make payments at the State Department for Lands and Physical Planning," read part of the statement.
"From November 27, 2023, all payments for land transactions attracting stamp duty shall be made to the State Department for Lands and Physical Planning through e-Citizen via pay bill number 222222."
How to Pay
KRA provided two payment options through mobile money services. All the payment instructions are available on the Ardhisasa platform through the 'Pay' tab.
Option 1
Kenyans are advised to click the featured link on the invoice to receive a menu showing the payment plan.
Enter your PIN and click OK.
You will receive a confirmation SMS from the mobile money operator.
Option 2
Click on the mobile money services menu on your phone.
Select the Paybill option.
Enter Business Number 222222.
Enter the Account Number featured in the instructions.
Enter the amount to be paid.
Enter your PIN and click OK.
The new changes come as the Ministry of Lands proposed an increase in land transaction fees as it aims to increase revenue collection. In the new proposal, an official search of land was revised to Ksh2,000 while the Registration of documents is Ksh1,500 and the corporation of certificate fees.
The Ministry also hiked fees for incorporation of trust to Ksh50,000 from the previous Ksh5,000.
According to Lands CS Alice Wahome, some of the fees proposed had remained unchanged for over three decades, occasioning the need to balance between service delivery and the cost of providing services.
