Kenya's new mining tax discourages investment
Investors interested in exploration and mining will find Kenya less attractive as a result of a new mining tax, reports Daily Nation
In an effort to address its budget deficit, the government introduced a withholding tax on the gross proceeds from share or property transfers in the extractive sector.
PricewaterhouseCoopers called the new tax measure punitive since it doesn't take into account associated costs. A capital gains tax would have allowed for a deduction of attributable costs.
While the government's 2012 finance bill initially proposed to re-introduce a capital gains tax for the transfer of shares or property, it was later replaced by a withholding tax.
In 1985, Kenya had suspended its capital gains tax to encourage savings and investment.
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