NSE welcomes exemption of Capital Gains Tax on shares

June 12, 2015
Shares

,

NSE Chief Executive Geoffrey Odundo says the move will improve liquidity on the Exchange which will then bring an increase in the overall number of shares being traded/FILE
NSE Chief Executive Geoffrey Odundo says the move will improve liquidity on the Exchange which will then bring an increase in the overall number of shares being traded/FILE
NAIROBI, Kenya, Jun 12 – The Nairobi Securities Exchange (NSE) has welcomed the exemption of shares from Capital Gains Tax (CGT) that was unveiled by the Treasury Cabinet Secretary Henry Rotich in the 2015/2016 budget.

NSE Chief Executive Geoffrey Odundo says the move will improve liquidity on the Exchange which will then bring an increase in the overall number of shares being traded, a key attribute that investors look for when investing in a stock market.

Odundo said the exemption is also important for the positioning of the new Nairobi International Financial Centre (NIFC) as an attractive and competitive investment destination.

Rotich removed the five percent tax on capital gains arising from the selling of shares and introduced a 0.3 percent withholding tax on transaction value of the shares.

“We’ll be looking in greater detail on how withholding tax will be applied. At a high level, Treasury has given a boost to investors and Kenya’s attractiveness as an investment destination. As a country we have high ambitions for the role our Capital Markets will play in Vision 2030 in terms of creating long-term financial security and personal savings,” Odundo said.

The Cabinet Secretary also committed the government to the launch of the M-Akiba bond, Kenya’s first mobile-based Treasury bond with a minimum investment level of Sh3,000.

NSE has worked with the Capital Markets Authority, Central Bank of Kenya, the Kenya Association of Stockbrokers and Investment Banks, the Central Depository and Settlement Corporation, the Nairobi International Financial Centre Authority, the ICT Authority and the National Treasury on the development of the M-Akiba bond and the roll out of the Treasury Mobile Direct (TMD) platform.

“Throughout the process, we have kept our eyes on the ultimate target: promoting financial inclusion in Kenya. The M-Akiba bond will enable an entirely new group of investors to access Government debt securities via their phones, which will undoubtedly drive up the national savings rate,” he added.

Shares

Latest Articles

Stock Market

Most Viewed