NAIROBI, Kenya, June 11 – The government has proposed to exempt foreign investors from the requirement to obtain a Kenya Revenue Authority (KRA) Personal Identification Number (PIN) when opening Central Depository and Settlement Corporation (CDSC) accounts to trade on the Nairobi Securities Exchange (NSE).
Treasury Cabinet Secretary John Mbadi said the proposal is contained in amendments to the Tax Procedures Act aimed at strengthening tax administration, improving compliance, supporting digitization and easing the tax burden on investors.
Speaking while presenting the 2026/27 Budget in Parliament, Mbadi said the current requirement for foreign investors to obtain a KRA PIN before opening CDSC accounts has been identified as a barrier to participation in Kenya’s capital markets.
“Currently, foreign investors are required to obtain a KRA PIN before opening Central Depository and Settlement Corporation accounts to participate in trading at the Nairobi Securities Exchange,” he said.
“In order to improve the attractiveness of Kenya’s capital markets to foreign portfolio investors, the Bill proposes to exempt foreign investors from the requirement to obtain a KRA PIN solely for purposes of opening Central Depository and Settlement Corporation accounts.”
The Treasury argues that the move will simplify market entry for foreign portfolio investors and enhance the competitiveness of Kenya’s capital markets as the country seeks to attract more international investment.
Mbadi noted that income earned by non-resident investors from investments at the NSE is already subject to withholding tax, which serves as a final tax, meaning such investors are not required to file annual income tax returns in Kenya.
The proposal forms part of wider amendments under the Finance Bill 2026 and comes as the government seeks to deepen capital markets, increase foreign participation and support economic growth through increased investment inflows.
If approved by Parliament, the change is expected to reduce administrative hurdles for foreign investors while boosting liquidity and trading activity at the NSE.
