Kenya: New finance law reintroduces capital gains tax

A new finance bill approved by parliament on 28 August paves the way for the reintroduction of a capital gains tax (CGT), suspended since 1985. Commenting on the bill, Africa Oil Corporation said that, “while the rate of capital gains tax has been established at 5% for most capital transactions, it appears that the mining and oil and gas sectors will be taxed at 30% or 37.5% depending on the company’s country of residency for tax purposes”. A final version of the finance bill has yet to be published, and details of how the tax will be imposed are not yet clear.