Analysts say Rotich’s cash transfer tax will chase away investors

ICEA Lion Asset Management business development general manager Elizabeth Irungu. --DIANA NGILA

The new money transfer tax will reduce returns of investors and put pressure on fund managers, according to ICEA Lion Asset Management.

Barack Obatsa, the chief investment officer of the Sh125 billion asset management firm, urged the government to reconsider the decision to introduce the 0.05 per cent tax on money transfers above Sh0.5 million warning that it will cause capital flight to offshore markets.

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