Parliament Wednesday amended the law to bring back the capital gains tax 36 years after it was abolished.

The new law, which was passed through an amendment to the Finance Bill 2014, sets companies and individuals on the path to paying taxes on the proceeds of property sold beginning January 1, 2015.

Kenya removed capital gains tax from its laws in 1978 hoping to use it to attract investment in its stock market, mining licences and real estate among other sectors.

Members of Parliament Wednesday brought back the tax by amending the Eighth Schedule of the Income Tax Act.

“Subject to this Schedule, income in respect of which tax is chargeable under Section 3(2)(f) is the whole of a gain which accrues to a company or an individual on or after January 1, 2015 on the transfer of property situated in Kenya, whether or not the property was acquired before January 1, 2015,” says Clause 22 of the newly enacted Finance Bill.