Nothing can be more unfair than retroactive taxation by the State

Two years ago, the government reintroduced the Capital Gains Tax (CGT), after its suspension in 1985. Since it commenced implementation, the vibrancy in the property market has translated to major fiscal benefits for the taxman and the KRA tax collectors who I understand are paid on commission basis.

For those not in the know, the CGT is a tax on the enhanced value of property from the date of purchase to the point of resale. It is not unique to Kenya and I am aware that Tanzania and Uganda, whose property markets are less dynamic than Kenya’s, have implemented the CGT regime for a while.