🇳🇬TechCabal•May 26, 2026Stalecollected in 17m

Kenya Proposes 15% CGT on Foreign Exits

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#kenya #tax-policy #emerging-marketstechcabal-dailyprosus delivery hero mtn ihs

💡Understand how shifting tax policies in emerging markets could impact your startup's exit strategy and valuation.

⚡ 30-Second TL;DR

What Changed

Kenya proposes a 15% capital gains tax (CGT) on foreign exits.

Why It Matters

New tax regulations in emerging markets like Kenya could alter the exit strategies for venture-backed AI startups and tech companies operating in the region. Investors may need to re-evaluate capital allocation and regional expansion plans.

What To Do Next

If you are a founder with operations in Kenya, consult with tax counsel to model the impact of the proposed 15% CGT on your future exit valuation.

Who should care:Founders & Product Leaders

Key Points

•Kenya proposes a 15% capital gains tax (CGT) on foreign exits.
•Prosus is actively working to prevent forced sell-downs of Delivery Hero shares.
•Shareholders are preparing to vote on the proposed MTN-IHS deal.

🧠 Deep Insight

Web-grounded analysis with 17 cited sources.

🔑 Enhanced Key Takeaways

•The proposed 15% CGT in Kenya's Finance Bill 2026 specifically targets offshore sales of local companies by non-resident investors, aiming to close loopholes that previously allowed foreign venture capital and private equity firms to exit without paying local taxes.
•Prosus is requesting the European Union to waive the requirement for further Delivery Hero share divestment, a condition originally imposed during the antitrust approval of Prosus's acquisition of Just Eat Takeaway.com in August 2025, especially as Uber has expressed interest in acquiring Delivery Hero.
•The MTN-IHS deal, valued at approximately $6.2 billion, involves MTN acquiring the remaining 75.3% of IHS shares to take the tower operator private from the New York Stock Exchange, with the IHS board unanimously recommending the $8.50 per share offer.
•Kenya's previous reintroduction of a 5% CGT in 2015, after a 30-year suspension, led to a significant drop in foreign portfolio investment at the Nairobi Securities Exchange, indicating potential sensitivity of foreign investors to such tax changes.

🔮 Future ImplicationsAI analysis grounded in cited sources

Kenya's proposed 15% CGT on foreign exits will likely deter some foreign direct investment, particularly in the startup and tech sectors.

Previous reintroductions of CGT in Kenya have led to a significant drop in foreign portfolio investment and concerns from industry groups about increased tax exposure and complexity for offshore investor exits.

Prosus's efforts to halt the forced sale of Delivery Hero shares could signal a shift in how European regulators balance antitrust concerns with evolving market dynamics and strategic investment.

The context of Uber's potential takeover bid for Delivery Hero changes the competitive landscape, making the forced sell-down less relevant to the original antitrust concerns regarding Just Eat Takeaway.com.

The MTN-IHS deal is poised to significantly strengthen MTN's control over its digital infrastructure in Africa and could lead to increased operational synergies.

MTN aims to acquire 100% of IHS's African tower portfolio, internalize lease payments, and expects the transaction to be net income and cash flow accretive, while delisting IHS from the NYSE.

⏳ Timeline

1975

Capital Gains Tax (CGT) first introduced in Kenya.

1985-06

Kenya suspended CGT to stimulate economic growth.

2015-01-01

CGT reintroduced in Kenya at a rate of 5% on net gains from property transfers.

2023-01-01

Kenya's CGT rate increased from 5% to 15% of the net gain.

2025-08

European Commission approved Prosus's acquisition of Just Eat Takeaway.com, conditional on Prosus reducing its Delivery Hero stake.

2026-02-17

MTN Group announced agreement to acquire remaining 75.3% stake in IHS Towers for approximately $6.2 billion.

2026-04-17

Prosus sold a 4.5% stake in Delivery Hero to Uber Technologies for approximately €270 million.

2026-04-30

Kenya's National Treasury Cabinet Secretary presented the Finance Bill, 2026, including the proposed 15% CGT on foreign exits.

2026-05-11

Prosus sold another 5% interest in Delivery Hero to Aspex Management for approximately €335 million.

2026-05-19

IHS board unanimously recommended shareholders approve MTN's acquisition offer.

📎 Sources (17)

Factual claims are grounded in the sources below. Forward-looking analysis is AI-generated interpretation.

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