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Kenya President Signs 5% Capital Gains Tax

New tax will start at the beginning of 2015

Tuesday 16th September 2014

Kenya President Uhuru Kenyatta Profile Picture

Kenya President Uhuru Kenyatta

A financial bill that was approved by parliament in the summer has been signed into law by President Uhuru Kenyatta in Kenya this week. The new tax will earn the country around $85m a year. Kenya hasn’t operated a capital gains tax since the 1980’s since it was dropped in an attempt to lure in investment.

Fears that the new tax may stagnate the economy appear to be waylaid because the tax is so small compared to similar taxes in other countries. The tax will currently only apply to mining, gas, oil exploration and extraction. Investors that are worrying the charge will spread to other areas and increase in size will have to be wait to see if their worries are founded in reality. With the extra money, the government plans to develop projects that will boost growth and create jobs.

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