NAIROBI, Kenya, Jul 30 – Kenya must provide a predictable and stable tax regime if it is to attract more domestic and foreign investment, industry experts have said, warning that frequent policy changes are increasing investor risk and undermining long-term business confidence.

📻 Breaking It Down

Speaking during the Capital FM Investment, Trade and Opportunity Town Hall at Strathmore University, the panelists argued that while taxation is essential for funding public services, policy certainty—not just tax incentives—has become one of the most important factors influencing investment decisions.

They said investors are willing to pay taxes provided the rules remain clear, transparent and consistent throughout the life of their investments.

Sameer Raja, Assistant General Manager and Investment Advisor at I&M Capital Limited, said Kenya’s capital markets demonstrate how clear and predictable tax policies can stimulate investment.

📌 What You Need to Know

“From an investment perspective, the tax laws are fairly clear, particularly around government securities and infrastructure bonds,” Raja said.

“Infrastructure bonds attracted significant demand because they were tax-free, and the growing focus on green bonds with tax incentives is the right direction for encouraging sustainable investment.”

He said targeted incentives and policy consistency have helped deepen Kenya’s capital markets and could mobilise more private capital into strategic sectors such as infrastructure and climate finance.

However, the panel noted that the predictability enjoyed by capital market investors has not always been replicated across the wider business environment.

Onesmus Kiema, Associate Director for Tax and Regulatory Services at KPMG East Africa, said certainty over future tax obligations is fundamental to investment planning.

“Investors always ask whether the tax system is predictable because they need certainty before committing their capital.”

📰 Source: Capital FM Kenya