Kuria Kimani, MP for Molo, has sponsored the Income Tax (Amendment) Bill, No. 20 of 2026, which aims to save Sacco members money on asset transfers.
A law enacted in 2023 stipulates that everyone transferring property, by sale or otherwise, must pay a Capital Gains tax of 15%. The tax is also applicable to the transfer of shares.
The only exception is the transfer of shares or stocks through the Nairobi Stock Exchange (NSE). If the Capital Markets Authority (CMA) licenses any other stock exchange, it will also be exempt from capital gains tax.
Parliamentary Bill in Favour of Sacco Members
Currently, Kenya’s Members of Parliament are discussing an amendment to the Income Tax Act. The bill under discussion is meant to exempt Sacco asset transfers from capital gains tax.
If the bill passes into law, it will mean that Sacco members do not have to pay a levy on property they acquire from the body they are part of. Simply put, if a company decides to transfer assets to its members, such transactions should not be subject to the capital gains tax.
This should be a welcome development, given how low people’s disposable income has been in the recent past.