On 27 August 2014, Kenya's Parliament approved amendments to Finance Bill 2014 that introduce a 5% capital gains tax (CGT). Kenya's tax law already includes provisions for CGT, but the application of the CGT provisions has been suspended since 1985.
The CGT included in Finance Bill 2014 applies to disposals of property in Kenya by both natural persons and legal entities. The CGT is intended to apply from 1 January 2015 regardless of when the property was acquired.
For taxpayers acquiring m…