An Analysis of Section 4a of the Kenyan Income Tax Act, Hedging and Foreign Exchange Losses and Gains
The one major drive in government policy in most developing countries, Kenya being no exception, has been to increase foreign direct investment. However, the need to provi,de a suitable tax system as a concomitant to this drive is one that has been only partially addressed. This apparent omission is the central concern of this paper. Whereas administration of tax law is improving countrywide, the legislation that supports the tax system remains predominantly the same. As part of the international drive towards globalisation, liberalisation of the economy and in order to encourage cross-border trading, Kenya's foreign exchange law was changed. Kenya unblocked! its currency by revocation of the Exchange Control Act? thus allowing for liberalised holding, using and trading in foreign exchange. This has in turn resulted in the opening of foreign exchange accounts by many companies in Kenyan banks which was finally allowed through amendment and finally withdrawal of the foreign exchange regulations. However, despite the revocation of some legislation, the foreign exchange provisions of the Kenyan lncome Tax Act3 have remained exactly the same.
The following license files are associated with this item: