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According to a Capital Markets Amendment Bill reportedly sponsored by Kenyan lawmaker Abraham Kirwa, holders of cryptocurrencies in the country will be forced to pay taxes on the gains. In addition, the bill (if passed) would require crypto holders to provide the Kenya 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 gain or loss on the transaction.”

Sharing Crypto Transaction Details with Regulator

Under a Capital Markets Amendment Bill reportedly going to the Kenyan parliament, people holding cryptocurrencies may in future be required to pay taxes commensurate with the gains made, according to a report. Kenyans holding cryptocurrencies for a period longer than twelve months will be required to pay capital gains tax while those holding less than a year will be required to pay income tax.

Apart from Kenyan cryptocurrency holders, the Amendment Bill also seeks to introduce taxes that target cryptocurrency exchanges and digital wallets. According to a Business Daily reportthe amendment bill is sponsored by Abraham Kirwa, MP for Mosop constituency.

In addition to proposing taxes, the bill proposes that people holding digital assets must share details regarding 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 of the transaction, all transaction-related costs, and the amount of any gain or loss on the transaction,” the amendment bill reportedly said.

Responsibilities of Persons Dealing with Cryptography

Meanwhile, Kirwa is quoted in the report as stating that his bill seeks to “make specific provisions to govern digital currency transactions in Kenya”. The bill also proposes what the MP defines as the “responsibilities of persons or companies who trade in digital currencies, [providing] for its taxation, 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 adoption of crypto by Kenyans, authorities in the country, including the Governor of the Central Bank of Kenya, Patrick Njoroge, have repeatedly insulted against the use of digital currencies issued by individuals.

However, the Kenyan lawmaker’s bill appears to acknowledge that warnings from Njoroge and others have failed to dissuade Kenyans from using or holding cryptocurrencies. Therefore, in addition to the aforementioned proposals, the bill also seeks to require those dealing with cryptos to keep and share records of all activities related to digital currency transactions.

“A person who trades digital currencies must keep records of digital currency transactions, including purchases and sales, [and] pay taxes on gains made on digital currency transactions in accordance with applicable laws,” the bill reportedly said.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

Image credits: Shutterstock, Pixabay, Wiki Commons

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