Kenya: Government to introduce a tax on capital gains
A tax on capital gains is to come into force in Kenya after the parliament adopted on Wednesday (August 27th) an amendment to the Finance Bill.A tax on capital gains is to come into force in Kenya after the parliament adopted on Wednesday (August 27th) an amendment to the Finance Bill.
From January 1st, 2015, all margins
acquired on the sale of
by an individual or a business will be taxed at five percent, Ecofin news agency reports.
The Kenyan government hopes the amendment - which must still be signed by the president of the country, Uhuru Kenyatta - will generate tax revenues of $85 million (€64.4 million).
Kenya is the only country in the east African region without a capital gains tax, and analysts fear that the introduction of this tax will have an impact on the housing market, reducing the profitability of the sector, according to the Financial Times.
It is not known at this time if the law will apply to transactions made on Kenya's stock exchange.