Kengen is currently at buy price if price recovers to 14.60/- then that will be a 66% gain but depends on time it will take to recover 1-2 years, months or weeks?

Stockbrokers have hired a top law firm to file a court petition challenging the new capital gains tax in the face of a two-week stalemate with the Kenya Revenue Authority (KRA) over the implementation of the levy.

The Business Daily understands that the market intermediaries have now engaged the law firm of HHM Oraro Advocates to seek the court’s ruling on clauses that they feel make deducting capital gains tax from investors impractical.

At the heart of the matter is an apparent conflict in law that in one section requires stockbrokers to deduct capital gains tax at the rate of 7.5 per cent, and says the dealers should retain five per cent of investor’s net gains from share sales in another.

The other major sticking point is the actual calculation of the net capital gain from share sales to be submitted to the taxman, with the brokers claiming they lack the capacity to ascertain the payable amount.

The stock dealers have suggested that investors be obligated to submit their capital gains to the KRA as part of their annual income tax, but the revenue agency wants the intermediaries to bear the responsibility of deducting and submitting the levy.

The CBK has been tasked with deducting the capital gains tax from investors who sell Treasury bills and bonds in the secondary market.

Tax experts have come out to support some of the issues raised by the stockbrokers. Auditors PKF point out that Parliament’s deletion of some sections in the Finance Act weakened the government’s position in implementing the tax.

They have also pointed out that foreign investors, who are also liable to pay the tax, do not have PIN numbers.

Kasib has also argued that no other country that charges capital gains tax on shares had designated stockbrokers as collecting agents.

Its only that I can't get a group to demonstrate outside treasury about this tax I would have done it.

The fact that nothing was done when the VAT Bill was passed yet it affects most Kenyans shows you that taking to the street because of the CGT that affects a few of us is a tall order.

KCB has been stagnating around 58/59 for a long while now meanwhile Equity has slowly been inching up, not to mention CFC, NIC. For a speculator KCB is a good bet not to mention its amongst the darlings of the foreign investors.