Capital Gains Tax on Inherited Property in Kenya: The Rebasing Principle, Landmark Cases, and the Five-Year Rule
Inheriting property in Kenya no longer means facing Capital Gains Tax with a zero cost base. Recent court decisions and legislative reforms have clarified how beneficiaries should calculate tax when selling inherited assets. The introduction of the rebasing principle—alongside the Finance Act 2023’s five-year rule—has reshaped the tax landscape, making timing, valuation, and proper documentation critical. Understanding these changes can mean the difference between a manageable tax outcome and a costly mistake.