According to a capital market amendment bill reportedly sponsored by Kenyan lawmaker Abraham Kirwa, owners of cryptocurrencies in the country will be obliged to pay taxes on gains. In addition, the bill (if passed into law) would require crypto holders to provide the Capital Markets Authority of Kenya with details such as “the amount of the transaction, any costs associated with the transaction, and the amount of gain or loss on the transaction.”
Shares crypto transaction details with regulator
According to a capital market reform bill reportedly submitted to the Kenyan parliament, individuals holding cryptocurrencies may in the future be required to pay taxes commensurate with the gains made, a report said. Kenyans who hold cryptocurrency 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 are liable to pay income tax.
Besides Kenyan crypto holders, the amendment also seeks to impose taxes targeting cryptocurrency exchanges and digital wallets. According to a Business Daily report, the amendment is sponsored by Abraham Kirwa, a Member of Parliament (MP) for Mosop Constituency.
In addition to proposing taxes, the bill proposes that people 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 gain or loss on the transaction.” it says in the amendment proposal.
Responsibility for people working with crypto
Meanwhile, Kirwa is quoted in the report as saying that his bill seeks to “determine specific provisions to govern digital currency transactions in Kenya.” The bill also proposes what the MP defines as “the responsibility of persons or businesses that trade in digital currencies, [providing] for its taxation, ownership and [providing] to [the] promote innovation in this area.”
As has been reported by Bitcoin.com News in the past, 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 Central Bank of Kenya Governor Patrick Njoroge, have repeatedly railed 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 individuals dealing in 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] pay tax on any gains made from transactions in digital currencies in accordance with applicable laws,” the bill states.
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