Kenya proposes 15% capital gains tax on offshore company sales

Kenya plans to impose a 15% capital gains tax on offshore sales of local companies, targeting structures used by foreign venture capital and private equity investors to exit Kenyan businesses without paying local taxes. The proposal in the Finance Bill 2026 would allow Kenya Revenue Authority (KRA) to tax gains made by non-resident investors selling shares abroad if those shares derive value from Kenyan assets or operations. The amendment targets gains from 'the alienation of shares by a non-resident person where the shares derive their value from Kenya', even if the transaction occurs outside Kenya. This particularly affects technology, energy, and infrastructure sectors where ownership structures are routed through offshore holding companies in jurisdictions like London, Mauritius, Delaware, and the Cayman Islands. Kenya is joining other countries like Uganda in taxing offshore transactions where economic value is generated locally—a trend that could reshape how foreign capital flows into African startups and strategic investments.

SOURCE: https://techcabal.com/2026/05/25/new-kenya-tax-vc-exits-15-levy/