There has been discussion of this in various fora. Given the big hole between expected Goverment revenues and increasing expenditure, some pundits have actually been advocating for its return. Assuming that Uhuru goes for it tomorrow or at some point in the future, what do you guys think will be its impact?

I for one think it will kill off an already struggling stock market. On the other hand, it might just manage to tame the runaway surge in property prices. Or will it?

I would expect it during a boom. Note that I am certainly not for it, either now or later. But for argument's sake, it appears like G.o.K may be running out of wiggle room. Just how much debt can they keep piling on?

This is the easiest way to chase away a good bunch of foreigh investors.

The rationale for a tax on capital gains has always escaped me. This is especially so in a country like ours which has a serious lack of investment avenues.
Since Uhuru et al cannot bring themselves to do the following which actually makes sense but will also reduce the likely deficit:
1. Reduce recurrent expenditure by moving to the 24 member cabinet; reducing defence spending or alternatively widening the mandate the army’s mandate to include border defence.
2. Widen the tax population to include all GoK members that currently don’t pay tax. Removing tax relief for newly listed companies (it doesn’t make sense, if you are going to list you are going o list regardless of the tax relief)
Let cgt be aimed at speculative investments. Those buying property, shares et al for a quick buck should be taxed because this is a non-value adding activity. Speculative investment can be defined as any buying and selling done within 12 or 18 months.

I dont agree with Mainat on this. It looks like each time the government needs to raise money only the salaried must be taxed to raise it. We known there is alot of money in real estate and the government needs to move in this arena and harverst from these money makers. Capital gain on real estate should be made compulsory, any person who cheats on the sale price for their property should be arrested and charged for corruption and other malpractices. We should have a law on this and parliament should put the interest of the country at heart, not just the benefits for the members who are the main owners of all the properties we are seeing around. This will reduce corruption as people will be forced to pay tax on real estates and it will bring down the cost of these properties....i dont know if i am making any economic argument here...but thats what i think

Capital Gain Tax would be ill advised in a country still trying to spur investments. It may help curb speculative practices in real estate but that is not the way to go. Real estate itself is ever on deficit.

For NSE it is just wrong and will reduce day-to-day volumes. I go with mkonomtupu widen the tax base and lets all share the 1 trillion budget

Kenyan politicians are allergic to anything that can hurt their interests. So I betcha that thing aint coming soon. At least not until ODM comes to power as they have not had too much time to accumulate large holdings.

Beisdes, The son of Ngina has to protect his family interests....

Never for our young NSE.Is this thing practised in established markets like SA,NYSE or HongKong?

SA GGT for individuals is 25% and for Companies 50%

This thing will be good for companies like Centum