Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Investors interested in exploration and mining will find Kenya less attractive as a result of a new mining tax, reports Daily Nation
In an effort to address its budget deficit, the government introduced a withholding tax on the gross proceeds from share or property transfers in the extractive sector.
PricewaterhouseCoopers called the new tax measure punitive since it doesn’t take into account associated costs. A capital gains tax would have allowed for a deduction of attributable costs.
While the government’s 2012 finance bill initially proposed to re-introduce a capital gains tax for the transfer of shares or property, it was later replaced by a withholding tax.
In 1985, Kenya had suspended its capital gains tax to encourage savings and investment.
Image: Shutterstock / Emjay Smith
