Nairobi, Jan. 6 -- Billionaire investor Baloobhai Patel stands to save up to Sh10.8 million in taxes on dividends from the transfer of his 49.9 percent direct stake in Carbacid Investments Plc to his private firm Aksaya Investment Holdings Limited.

The transaction is among several that the businessman says are part of succession planning. In the case of Carbacid, it will also lead to a reduction of taxes.

Mr Patel has been incurring a withholding tax of five percent on dividends paid by the Nairobi Securities Exchange-listed firm, with the levy applicable to all individual investors.

Kenyan companies on the other hand are exempted from the tax if they own a stake of more than 12.5 percent in the firm paying the dividend.

Carbacid paid...