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Kenyan Lawmaker Proposes Introducing Crypto Income and Capital Gains Tax – Regulation Bitcoin News

According to a capital markets amendment bill reportedly sponsored by Kenyan lawmaker Abraham Kirwa, cryptocurrency holders in the country will be required to pay taxes on profits. In addition, the bill (if passed into law) will require crypto holders to provide Kenya’s Capital Markets Authority with details such as “the amount of proceeds from the transaction, any costs associated with the transaction, and the amount of any profit or loss on the transaction.”

Share crypto transaction details with regulator

According to a capital markets amendment bill reportedly before the Kenyan parliament, individuals holding cryptocurrencies may in the future be required to pay taxes commensurate with the profits made, a report says. Kenyans who hold cryptocurrencies for a period of more than twelve months will be required to pay capital gains tax, while those who hold for less than a year will be required to pay income tax.

In addition to Kenyan crypto holders, the amendment bill also seeks to introduce taxes targeting cryptocurrency exchanges and digital wallets. According to a Business Daily report, the amendment bill is sponsored by Abraham Kirwa, a Member of Parliament (MP) for the Mosop constituency.

In addition to proposing taxes, the bill proposes that persons holding digital assets must share details of how and when the crypto was acquired with Kenya’s Capital Markets Authority (CMA).

“A person who owns or trades in digital currency must provide the Authority with the following information for tax purposes – the amount of the proceeds from the transaction, any costs associated with the transaction, and the amount of any profit or loss on the transaction.” the amendment bill apparently reads.

Responsibilities of Persons Dealing in Crypto

Meanwhile, Kirwa is quoted in the report as saying that his bill seeks to “make provision for specific provisions to govern digital currency transactions in Kenya.” The bill also proposes what the MP defines as the “responsibilities of persons or businesses dealing in digital currencies, [providing] for its taxes, ownership, and [providing] for [the] promoting innovation in this area.”

As previously reported by News, Kenya has one of the highest concentrations of cryptocurrency holders in Africa and is one of the largest crypto markets on the continent. Despite this embrace of crypto by Kenyans, authorities in the country, including the Governor of the Central Bank of Kenya, Patrick Njoroge, have repeatedly spoken out against the use of privately issued digital currencies.

However, the Kenyan legislature’s bill appears to acknowledge that the warnings by Njoroge and others have failed to dissuade Kenyans from using or holding cryptocurrencies. Therefore, in addition to the above proposals, the bill also seeks to compel persons dealing with crypto to maintain and share records of all activities related to digital currency transactions.

“A person dealing in digital currencies must keep records of digital currency transactions, including purchases and sales, [and] tax paid on any profits made from transactions in digital currencies in accordance with the applicable laws,” the bill reads.

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Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, writer and author. He has written extensively about the economic problems of some African countries as well as how digital currencies can offer Africans an escape route.

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