Billions at stake as Nairobi Securities Exchange shuts down over tax dispute

NAIROBI: Starting Friday, local or foreign investors will for the next one month not be able to buy or sell their shares at the Nairobi Securities Exchange (NSE). This is after stockbrokers and investment banks threatened to boycott trading pending a court decision on whether or not they should collect Capital Gains Tax on behalf of the Government.

This decision puts at stake loss of a daily turnover worth Sh1.2 billion at the Nairobi bourse. The immediate casualties are government sponsored bonds — used to finance budget needs, foreign direct investment, and firms pushing to raise funds — all valued at billions of shillings.