NAIROBI, June 12 (Xinhua) -- Kenya on Tuesday signed an agreement with Singapore to phase out double taxation and attract investments from the Southeast Asian country in key sectors like agro-processing and financial services.
Henry Rotich, the Cabinet Secretary for National Treasury and Planning, said the elimination of double taxation will promote trade between the two countries alongside sharing of expertise required to hasten economic growth.
"The main objective of eliminating double taxation is to create a conducive environment for investments and trade in goods and services between Kenya and Singapore," said Rotich.
"Other benefits include facilitation in tax administration through sharing of information by tax authorities of the two countries, hence checking tax evasion," he added.
Rotich said that Kenya is keen to tap into Singapore's expertise in policy and regulatory reforms as well as human resources development that catapulted it to middle income status within a short period.
Currently, the balance of trade between Kenya and Singapore is in favor of the latter and represents a deficit of an estimated 51 million U.S. dollars.
According to Rotich, Kenya's exports to Singapore that includes tea, fruits, nuts and vegetables stood at 30 million dollars while imports from the country that included synthetic fibers and polymers stood at 50 million dollars in 2017.
He said the signing of an agreement on promotion of investments between Kenya and Singapore will help address the yawning trade deficit.
"The agreement is also designed to encourage investor confidence by setting high standards of investor protection applicable in international law," said Rotich.
Tharman Shanmugaratnam, Singapore's Deputy Prime Minister and Coordinating Minister for Economic and Social Policies, said the removal of double taxation will encourage investors from his country to venture into Kenya's rapidly growing manufacturing, logistics and ICT sectors.
"We intend to deepen our cooperation with Kenya given that it is East Africa's largest business and logistics hub. The elimination of double taxation will encourage our business entities to look for opportunities in Kenya," Shanmugaratnam said.
He revealed that Singapore private investors will be holding regular forums with their Kenyan counterparts to explore investment opportunities in key areas like shipping, logistics, water solutions, construction and tourism.
