20 June 2018
A | A
    Print
  

International law & trade feed-image    Tax feed-image   

Singapore and Kenya sign two agreements

Business Times
13 Jun 2018
Elyssa Tan

Singapore and Kenya signed two agreements on Tuesday, namely a Bilateral Investment Treaty (BIT) and an Agreement for the Avoidance of Double Taxation (DTA), to promote greater investment flows.

Signed by Senior Minister of State for Trade and Industry, Koh Poh Koon, and the Kenyan Cabinet Secretary of the Treasury, Henry Rotich, and witnessed by Deputy Prime Minister Tharman Shanmugaratnam, these agreements aim to enhance economic ties between both countries.

As of 2017, the total bilateral trade in goods between Singapore and Kenya stood at S$85.4 million, with Singapore's imports from Kenya amounting to S$13.9 million and exports to Kenya at S$71.4 million.

"Kenya's strong economic growth and diversified economy present opportunities for Singapore companies," said Dr Koh.

"The agreements signed today will further boost trade and investment flows between our countries, and encourage participation in Kenya's growth sectors such as agri-business, technology and transport and logistics. This also signifies our commitment to deepen economic relations with Kenya and the East African region."

The BIT, a legally binding agreement between both countries, aims to promote greater investment flows between Singapore and Kenya by protecting the interests of both Singaporean and Kenyan investors.

This will boost the confidence of investors to invest in either country as they will be granted protection such as non-discriminatory treatment compared to other foreign investments, protection from illegal expropriation and the freedom to transfer capital and returns in and out of the country. The DTA, on the other hand, stipulates the taxing rights of both jurisdictions on all forms of income flow arising from cross border business activities, and minimises the double taxation of such income.

Singapore companies in Kenya include CrimsonLogic, Pacific International Lines and Asiatic Agricultural Industries, where they are respectively involved in the infocomms, transport and logistics, and agriculture sectors.

Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.