Indexation in capital gains tax is necessary

The tripling of taxes on the transfer of real estate and shares in privately-held firms failed to lift government collections. PHOTO | SHUTTERSTOCK

The Treasury’s move to triple the capital gains tax without excluding the impact of inflation is punitive to investors.

Kenya will from January 1 increase the capital gains tax on the sale of land, houses and unquoted shares to 15 percent from five percent, hitting real estate investments and private equity deals.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.