Stockbrokers back down on threat to stop trading
20 February 2015, 13:11
Nairobi - Kenyan stockbrokers said they would resume business as normal on Friday after backing away from a threat to stop trading for a month due to a court case involving the reintroduction of a capital gains tax, their association said.
Kenya implemented a 5 percent capital gains tax in January that investors say could affect investment in equities, property and the country's nascent oil and mining sectors.
"In the interest of maintaining the sanctity and stability of the capital markets in Kenya, the Council of KASIB has further resolved that they shall not suspend trading services," the brokers' association, known as KASIB, said in a statement distributed by the regulator, the Capital Markets Authority.
The brokers' association filed a case in court, asking for the lifting of the tax on traded shares. The brokers are also upset by a requirement that they deduct capital gains tax on traded stocks on behalf of the state.
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