Section 117 of Stamp Duty Act CAP 480: Exemptions from stamp duty

(1) There shall be exempt from stamp duty under this Act—
(a) an instrument executed by or on behalf of or in favour of the Government in any case in which, but for this exemption, the Government would be liable to pay the duty;
(b) a bill of exchange, cheque or promissory note drawn or made in Uganda or in Tanzania and accepted and paid or 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 office savings bank established under the provisions of the Kenya Post Office Savings Bank Act (Cap. 493B)(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 certificate 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 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 officer for the due execution of his duties;
(h) a will, codicil, registered family trust or other testamentary disposition;
(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 schedule;
(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 (Cap. 517);
(k) the sale conveyance, transfer or issue of shares, preferred shares, stocks, warrants or similar capital market instruments which are listed and transacted on the Nairobi Stock Exchange or other securities exchange approved under the Capital Markets Authority Act (Cap. 485A);
(l) an instrument under the Movable Property Security Rights Act (Cap. 499A);
(la) the purchase of a house by a first time home owner under affordable housing scheme;
(m) an instrument executed for purposes of collection and recovery of tax;
(n) an instrument relating to the business activities of special economic zone enterprises, developers and operators licenced under the Special Economic Zones Act (Cap. 517A);
(o) the transfer of a house constructed under an affordable housing scheme from the developer to the National Housing Corporation;
(p) fixed duty of one hundred shillings charged on contracts to be chargeable as conveyances on sale under section 49;
(q) an instrument executed in favour of a mortgage refinance company; and
(r) the transfer of property by a company to its shareholders as part of an internal reorganisation:
Provided that—
(a) the property is transferred to the shareholders in proportion to their shareholding in the company immediately before the transfer; and
(b) where the property consists of shares, such shares should be in a subsidiary of the company undertaking the transfer.
(2) The exemption conferred by this section on the Government shall extend to the Community and to
the Corporations within the Community.