Market Taxation Guide – Kenya

This Market Taxation Guide (Kenya) provides the following details:

• Reference information about all taxes applied at source, through Clearstream and its local depositories, to securities deposited in Clearstream.
• Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream.

New and improved tax information and procedures that become available will be included on an ongoing basis.

Important note: This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered as legal advice on any subject matter. Readers of this Market Taxation Guide, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice from a tax advisor.

Types of securities eligible in Clearstream

The eligible securities issued in Kenya are as follows:

• Infrastructure bonds.
• Government securities:
  • Government bonds.
  • Treasury bills.

Withholding tax

Withholding Tax is retained at source. Tax reclaim is not common practice in Kenya.

Clearstream does not provide tax Relief at source, Quick or Standard refund services for the Kenyan market. Clients are advised to engage a local tax agent for all tax-related matters according to market practice.

Capital gains tax

Typically, there is no capital gains tax withheld through Clearstream on securities held in Clearstream. However, capital gains tax may be payable on specific gains. Clearstream does not assist in this regard. Please consult your tax advisor for further information.

Stamp duty

There is no stamp duty withheld through Clearstream on securities held in Clearstream. Stamp duty may, however, be payable on specific transactions. Clearstream does not assist in this regard. Please consult your tax advisor for further information.