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Singapore and Kenya sign investment, tax agreements
SINGAPORE and Kenya signed two agreements on Tuesday, namely a Bilateral Investment Treaty (BIT) and an Agreement for Avoidance of Double Taxation (DTA), to promote greater investment flows and to enhance economic ties between both countries.These agreements were signed by Senior Minister of State for Trade and Industry, Koh Poh Koon, and the Kenyan Cabinet Secretary of the Treasury, Henry Rotich. The signing of both agreements was witnessed by Deputy Prime Minister Tharman Shanmugaratnam. “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. Protective measures include the non-discriminatory treatment compared to other foreign investment, protection from illegal expropriation and the freedom to transfer capital and returns in and out of 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.