taxation for gifts (property) in Kenya

In Kenya the tax rate is 5% (capital gains tax), which may potentially apply in either of the scenarios that you have mentioned, as it is the transfer of the property that triggers the tax payment. 

For a sale, the tax would be payable on the difference between the purchase and the sales price.   I am not sure how it would be calculated on a transfer of property by gifting it. 

There was something that I saw about proposals to increase the tax rate to 12.5%, in the last budget, but don't know when this will take effect.

There are some exemptions;
-Transfer of property between spouses as part of a divorce settlement.
-A private residence if the individual owner has occupied the residence continuously for the three-year period immediately prior to the transfer.
-Disposal of property for purpose of administering the estate of a deceased person.

In the event of a gift there would be no capital gains as the property will be transferred without consideration (there would be no monetary gains that may be taxed). Taxation on gifts (property) is governed by the Land Registration Act, Stamp Duty Act, Income Tax Act and Estate Duty Act.

Increasing of the property taxation bracket was highlighted in the Budget speech by the Cabinet Secretary to the National Treasury, however, the increase from 5% to 12.5% Capital Gains Tax is yet to be reflected in the Finance Bill 2019 as the same has not been published.

Mr Ranier, if you truly want reliable answers from someone who knows 100%, no surface-opinions please, kindly consult a competent lawyer or tax consultant as opposed to going online looking for persons to hawk out services casually on expat.com