Kenya: Mixed fortunes from capital gains tax

NAIROBI: In the face of the ever growing budget, the National Treasury sought to raise additional revenue through the re-introduction of Capital Gains Tax. CGT were suspended in Kenya in 1985 to encourage investments in the property market as well as spur growth in the stock market.

After the 2014 Finance Act which was assented to by the President in September, the government re-introduced CGT at 5 per cent on gains realised from the transfer of property as well as gains from sale of shares in the stock market. The 5 per cent capital gain tax is considered much lower compared to that charged in neighbouring countries.