To capitalise on a tax amnesty that ended in June 2019, many Kenyans have withdrawn their capital from overseas markets to send it back home.. According to the Kenya Revenue Authority (KRA) approximately Sh1 trillion came back from offshore accounts during the last three years. The amnesty provided them coverage from tax. Kenyan government amended the law allowing the amnesty, for funds transferred back to Kenya and also exempted it from the provisions of Proceeds of Crime and Anti-Money Laundering Act, 2009 or any other such Acts.
As a result, Banks in Mauritius have recorded significant cash outflows pointing out that Mauritius served as the top offshore investment destinations for wealthy Kenyans to tuck away their wealth.
However, for Mauritian banking sector, Kenya continues to be a core market said Port Louis-based Bank One in its latest annual report. Kenya’s banking group I&M Holdings has a 50 percent stake, in Bank One. It added that the sector will have to innovate and come up with new services to stay competitive and relevant.
Mauritius is seen as attractive to foreign investors because of its favourable tax system. Individuals earning incomes of up to Sh1.9 million, for instance, pay tax at the rate of 10 percent.
