Singapore and Kenya’s investment treaty comes into force

A TREATY between Singapore and Kenya, drawn up to promote greater investment flows between the two countries, entered into force on Sunday (Aug 20).

Under the bilateral investment treaty signed in 2018, Singapore companies operating in Kenya – the largest economy in the East Africa Community – will have protection on their investments on top of that already accorded under Kenya’s domestic laws.

Investors from both countries will have fair and equitable treatment, and full protection and security, based on customary international law.

Other benefits include non-discriminatory treatment compared to other foreign investments, protection from illegal seizure of property, and the freedom to transfer capital and returns in and out of the country.

Kenya was Singapore’s ninth-largest trading partner in Sub-Saharan Africa last year, generating S$212.2 million in bilateral trade of goods.

It has one of the largest maritime ports in Sub-Saharan Africa, and is an important point of entry to its neighbouring landlocked countries.

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Singapore and Kenya sign three new deals on sustainability, skills development, digital economy

Singapore Prime Minister Lee Hsien Loong visited the country in May, where he witnessed the inking of three deals alongside Kenyan President William Ruto. The memorandums of understanding will see both sides collaborate in the areas of sustainability, skills development and the digital economy.

During his visit, PM Lee said he welcomes the ratification of the bilateral investment treaty, and another agreement on the avoidance of double taxation, soon.

The two leaders had agreed during their meeting to speed up the operation of the two agreements, which will be a strong signal to businesses and provide clarity on cross-border transactions and investment.