Kenya and Singapore have signed two new agreements that are expected to pave way for mutual trade relations between the two countries.
The first agreement touches on the Avoidance of Double Taxation (DTA) is expected to eliminate double taxation of income arising in individual states and paid to residents of the other country.
“The treaty will be critical in unlocking the trade constraints between the two nations even as government seeks to draw benefits from the improved trade relations with the economic giant.” said Henry Rotich, Kenya’s C.S National Treasury.
He added that, the agreement will create a conducive environment for investments and trade in goods and services between the countries by removing uncertainties on taxation occasioned by having two different jurisdictions at play.
The other signed agreement is the Promotion and Protection of Investments (IPPA) which sets out the respective rights and obligations of cross investments between Kenya and Singapore. This is expected to stimulate the flow of FDI from Singapore to Kenya and vice versa.
The CS added that he expected the agreement to provide for greater investment opportunities for both Singaporean and Kenyan investors as part of the government driven agenda to pave way for foreign nations to participate in Kenya’s development agenda.
“I am confident that the signing and eventual implementation of the agreements will promote and encourage greater flow of investments and trade for the benefits of both countries for many years to come,” he said.
Trade between the two countries has remained skewed with Kenya exporting goods worth Sh370 million in 2017 while importing goods worth Sh5.8 billion.
Singapore has already expressed interests in making investments in the country through the Singapore Business Federation in the areas of shipping, logistics, ports, water solutions, ICT, consumer electronics, construction equipment and conference services.