“Kenya to start taxing startup workers’ shares before they get paid”

Kenya’s Finance Bill 2025 is proposing the removal of the tax deferral on Employee Share Ownership Plans (ESOPs). Previously, employees could defer taxes on their stock options until they sold their shares.

Under the new proposal, taxation would occur at the point of vesting, potentially burdening employees with tax liabilities before realising any financial gain.

This marks a significant shift in the country’s approach to fostering its startup ecosystem. The proposed legislation aims to repeal several tax incentives that have been instrumental in attracting and retaining startups and investors.

Additionally, the bill proposes eliminating the 100% investment deduction for companies investing in hotel buildings, manufacturing sites, and equipment.

To read more click here