In 2022, Kenyan citizens and firms increased their assets in Switzerland by Kes.3 billion, despite transferring a substantial portion of their portfolios to other tax havens.
According to the Kenya National Bureau of Statistics (KNBS), assets in Switzerland rose to Kes. 9.82 billion from Kes. 6.82 billion in 2021. This increase likely stems from both the growth in portfolio values and new investments in Switzerland.
Foreign assets typically held in such countries include savings accounts, equities, government bonds, and property, all of which can be liquidated and repatriated.
Despite the rise in Swiss assets, Kenyan investments in several other tax havens declined, leading to an overall reduction in total portfolios held in these jurisdictions. This shift suggests that some assets were repatriated to Kenya or moved to countries outside the tax haven category.
Mauritius, known for its low tax rates and extensive double taxation treaties, saw a 27 percent drop in Kenyan assets, decreasing from Kes. 27.1 billion to Kes. 19.8 billion. Despite this decline, Mauritius remains the top tax haven for Kenyan investors, holding 3.8 percent of Kenya’s total assets abroad and ranking as the seventh overall destination.
The Isle of Man, a self-governing British territory in the Irish Sea, also experienced a 25 percent reduction in Kenyan assets, falling from Kes. 14.7 billion to Kes. 11 billion. Known for its low tax rates and lack of capital gains tax, it continues to attract investors.
The Netherlands, ranked just above Switzerland on the Tax Haven Index, recorded an 18 percent drop in Kenyan assets, from Kes. 2 billion in 2021 to Kes. 1.7 billion in 2022.
Overall, Kenya’s assets in tax havens fell by 16 percent, from Kes. 51.7 billion in 2021 to Kes. 43 billion in 2022. This decline aligns with the Kenya Revenue Authority’s implementation of an information exchange agreement with 106 jurisdictions, including tax havens, allowing it to access data on Kenyan assets held abroad.
