Capital Gains Tax
Capital Gains Tax (CGT) was re-introduced in Kenya with effect from 1st January 2015 after having been suspended in 1985. CGT is chargeable on the whole gain which accrues to any individual or corporate body on the transfer of property situated in Kenya, at a rate of 5% of the gain. CGT is payable by the person (resident or non-resident) transferring the property.
It should be noted that the property must be situated in Kenya and therefore the sale of shares in an offshore holding company which owns Kenyan property does not trigger CGT in Kenya. With effect from 1 January 2016, there is no CGT arising on the sale of securities listed on a securities exchange in Kenya.