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Exemption from Capital Gains Tax
The article discusses exemptions from Capital Gains Tax in Kenya, highlighting specific scenarios where taxpayers may not be liable for the tax. It likely covers legal provisions under the Income Tax Act and relevant court decisions that define such exemptions. The piece serves as a guide for individuals and entities to understand when capital gains tax does not apply.
Digitization of the merger filing process
The article discusses the digitization of the merger filing process, highlighting the move towards electronic submissions and streamlined procedures. It notes the benefits of increased efficiency and transparency in merger reviews. The shift is part of broader efforts to modernize regulatory processes in Kenya.
Draft value added tax electronic tax invoice regulations 2019
The article discusses the Draft Value Added Tax Electronic Tax Invoice Regulations 2019, which propose requirements for electronic invoicing under Kenya's VAT system. The regulations aim to modernize tax administration by mandating electronic tax invoices. The draft is currently under consideration.
Amendments to companies act 2015
The article discusses amendments to the Companies Act 2015 in Kenya, categorized under Commercial & Business Law. No specific details about the amendments are provided, and readers are directed to contact the law firm for further information.
Tax Calendar
CM Advocates published a Tax Calendar for tax compliance deadlines, inviting inquiries via tax@cmadvocates.com. The calendar serves as a guide for taxpayers to meet their obligations.
Application for Kenyan Citizenship by a Foreign Male Spouse
Kenyan citizenship by marriage is now available to foreign male spouses under the Constitution of Kenya 2010, which removed previous gender discrimination. Applicants must have been married to a Kenyan citizen for at least seven continuous years, and the marriage must be legally recognized. Key requirements include a valid marriage certificate, evidence of family life, good standing, and no bankruptcy. The process is governed by Article 15(1) of the Constitution, Section 11 of the Kenya Citizenship and Immigration Act 2011, and related regulations.
FAQs on Data Protection
This article addresses frequently asked questions about Kenya's Data Protection Act, 2019. It clarifies that the Act applies to all entities processing personal data of Kenyan residents, including corporate entities. Registration with the Office of the Data Protection Commissioner is mandatory for certain entities, such as those with annual turnover over KES 5 million and more than ten employees, or those in specific sectors like financial services, health, and telecommunications. The article outlines penalties for non-compliance, including administrative fines up to KES 5 million or 1% of annual turnover, and criminal penalties of fines or imprisonment. It also discusses requirements for valid consent, the possibility of dual registration as data controller and processor, and the retention of employee data post-employment based on necessity and legal obligations.
Post-Nuptial Agreements in Kenya
The article discusses post-nuptial agreements in Kenya, which are contracts between married couples specifying asset division in case of separation or divorce. It explains their benefits, such as protecting pre-marital assets and defining matrimonial property, and notes that while Kenyan law does not expressly recognize them, courts have enforced them as contracts absent fraud, coercion, or manifest injustice. The author references case law, including DNK vs. KM, to illustrate enforceability and court reluctance to alter agreements freely entered. These agreements are particularly useful for couples without pre-nuptial agreements or those seeking financial clarity.
Estate Planning Solutions for Expatriate Employees in Kenya.
The article outlines estate planning options for expatriate employees in Kenya, emphasizing the importance of managing assets in the event of death or incapacity. It explains key concepts such as domicile, movable and immovable property, and the legal framework under the Law of Succession Act and the Constitution. Common estate planning tools discussed include written wills, family trusts, deeds of gift, and powers of attorney, with specific attention to the limitations on land ownership by non-citizens. The article provides guidance on the formal requirements for a valid will and the role of an estate planning lawyer.
Get to Know About the Acquisition of Kenya Dependant’s Pass.
The article explains the Kenya Dependant's Pass, a document allowing dependants of valid Kenyan permit holders, permanent residents, or citizens to enter and stay in Kenya. It details eligibility categories including spouses and children under 21 of permit holders, elderly parents, and others approved by the Director of Immigration Services. Key criteria require the dependant to rely on the host for support, the host to have valid residence status and sufficient income, and prohibits the dependant from engaging in paid work without a work permit. The pass is valid for the duration of the host's residence permit, and additional permits may be needed for children's education.
What Happens to the Kenya Dependant’s Pass (KDP) of a Widow, When the Spouse Dies?
Under section 28(f) of the Kenya Citizenship and Immigration Regulations 2012, a Kenya Dependant’s Pass (KDP) held by a widow becomes invalid upon the death of her spouse. The article outlines several immigration options for widows to remain in Kenya, including applying for citizenship as a widow of a Kenyan citizen (if married for seven years), applying for permanent residence under section 37 of the Kenya Citizenship and Immigration Act 2011 (if married for at least three years), or applying for a Class K residence permit (ordinary resident) if the deceased’s estate provides sufficient annual income of at least USD 24,000. Widows may also apply for other work permit categories if they meet the requirements, and holding a Class K permit for seven years can lead to citizenship or permanent residence.
Transition from the Betting Control and Licensing Board to the Gambling Regulatory Authority of Kenya
The Betting Control and Licensing Board (BCLB) has initiated a transition to the Gambling Regulatory Authority of Kenya (GRA) following the Gambling Control Act, 2025. A moratorium on annual license applications is in effect until the transition completes by February 2026. Existing licensees may continue operating under current licenses until expiry. Stakeholders are advised to monitor GRA communications and prepare for the new regulatory framework.
Legal Alert: The Local Content Bill, 2025
The Local Content Bill, 2025, proposed in Kenya's National Assembly, aims to establish a framework requiring foreign companies to source at least 60% of goods and services from local firms, employ 80% Kenyan citizens, and source agricultural produce from Kenyan farmers. Non-compliance may result in fines of KES 100 million or imprisonment for executives. The Bill applies to sectors including financial, insurance, construction, transport, and logistics services. If enacted, it will significantly impact procurement, employment, and supply-chain operations for foreign-controlled companies in Kenya.
New COMESA Competition & Consumer Protection Regulations and Rules 2025
The COMESA Competition and Consumer Protection Regulations and Rules 2025 entered into force on December 5, 2025, replacing the 2004 framework. Key changes include an expanded mandate for the COMESA Competition and Consumer Commission to cover consumer protection, exclusive jurisdiction over mergers meeting thresholds, a mandatory pre-merger notification regime, increased merger notification fees (0.1% of combined turnover/assets, capped at COM$300,000), and new notification thresholds (e.g., combined turnover/assets ≥ COM$60 million). The Appeals Board is abolished, with appeals now going directly to the COMESA Court of Justice, and fines must be paid within 45 days or incur a 2% daily penalty.
COMESA Competition and Consumer Protection Regulations 2025: Official Launch in Livingstone, Zambia
The COMESA Competition and Consumer Commission officially launched the 2025 Competition and Consumer Protection Regulations and Rules in Livingstone, Zambia, marking full implementation across all 21 member states. The framework introduces a fully suspensory merger control regime, updated notification thresholds (combined turnover/assets of USD 60 million), a digital transaction value test for mergers in digital markets (USD 250 million), and an expanded consumer protection mandate prohibiting dark patterns and harmful digital content. Filing fees increased ten-fold to 0.1% of combined turnover/assets, capped at COM$300,000, and fines for non-compliance reach 10% of annual turnover. Kenyan businesses with cross-border operations in COMESA must assess compliance obligations under the new regime.
High Court Refuses “Budaboss & Device” for Confusing Similarity to “Boss”
The High Court in Trademark v Owino (Civil Appeal E584 of 2022) overturned a Registrar's decision and refused registration of 'BUDABOSS & Device' in Class 25 for being confusingly similar to the earlier registered mark 'BOSS'. The Court held that the dominant element 'BOSS' remained central despite the prefix and device, and assessed likelihood of confusion from the perspective of a reasonable consumer with imperfect recollection. It also clarified that issuance of a registration certificate does not deprive the High Court of jurisdiction to hear an appeal or order rectification. The decision reinforces strong protection for distinctive brand elements and signals a stricter approach to composite marks incorporating core components of established brands.
Gambling Licensing Requirements Under Kenya’s Gambling Control Act
The article outlines key licensing requirements under Kenya's Gambling Control Act No. 14 of 2025, including corporate structure (minimum 30% Kenyan shareholding), mandatory suitability assessments, and security bonds ranging from KES 200,000 to KES 100 million depending on license category. It also details capital adequacy obligations, player fund segregation, transaction limits, and audited financial statement requirements for gambling operators.
Key Consequences of Non-Compliance for Public Benefit Organizations
The article outlines the consequences for Public Benefit Organizations (PBOs) in Kenya under the PBO Act and 2026 Regulations, including suspension or cancellation of registration for non-compliance with governance obligations, criminal penalties for fraud or misrepresentation, administrative sanctions like warning notices, and funding risks due to loss of donor confidence. It also provides practical steps for mitigating these risks through proactive compliance frameworks.
The Court of Appeal Stops the Pendulum in Tax Disputes: Demystifying the “Missing Trader” Narrative
The Court of Appeal in Kenya, in a majority decision delivered on May 15, 2026, in Pearl Industries Limited vs. Commissioner of Investigations and Enforcement, clarified the burden of proof in tax disputes. The court held that once a taxpayer provides documentary evidence under Section 15 of the Income Tax Act and Section 17 of the VAT Act, the burden shifts to the Commissioner to rebut with evidence, not mere suspicion or the 'missing trader' narrative. The ruling reinforces that tax assessments must be based on evidence and statutory authority, and that the pendulum of proof stops with the taxpayer after initial compliance.
Kenya Gazettes the Gambling Control (Licensing) Regulations, 2026
On 30 June 2026, Kenya gazetted the Gambling Control (Licensing) Regulations, 2026, operationalizing the licensing regime under the Gambling Control Act, 2025. The regulations establish a centralized licensing framework under the Gambling Regulatory Authority (GRA), expanding obligations to operators, manufacturers, suppliers, and key individuals. They impose significant capital requirements, high fees, and comprehensive disclosure and compliance obligations. Existing operators have 60 days to transition to the new regime.