The Finance Act of 2022 (Finance Act) has amended the Income Tax Act (ITA), by increasing the rate of capital gains tax (CGT) from 5 percent to 15 percent.
The Finance Act provides that the increase will take effect from 1 January 2023. In the case of a firm certified by the Nairobi International Financial Centre Authority that invests Sh5 billion in Kenya, and where the transfer of such investment is made after five years, the applicable rate shall be the rate that was prevailing at the time when the investment was made.
