The impact of capital gains taxation on the prices of ordinary shares of selected enterprises in the Nairobi Stock Exchange
Runyenje, Nicholas M
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This study aimed at determining whether he introduction of capital gains tax had any impact on the prices of ordinary shares on the Nairobi Stock Exchange. I also aimed at establishing the trend if any, of prices on the Nairobi Stock Exchange from 1973 to 1983, a period characterized by different economic situations in the country . The study was of interest because of the resentment which faced capital gains tax since its introduction in Kenya on the allegations that it disturbed the Stock Exchange Market . Indices of ordinary share prices were computed and were analysed as a time series through tabular and graphic methods on annual , monthly and weekly basis. It was found that ordinary share prices on the Nairobi Stock Exchange exhibited a significant trend between 1973 and 1983 which was downward between 1973 - 1975 , upward between 1970 - 1978 and downward again from 1979 - 1983 . The prices reached their highest levels in 1978 and their lowest in 1975 .