Singapore’s government announced signing a new income tax treaty (DTA) with Kenya on 24 September 2024. This new DTA replaces the previous agreement signed on 12 June 2018 which never entered into force.
The agreement establishes a 10% withholding tax rate on interest, royalties, and technical fees and an 8% rate on dividends.
The tax treaty seeks to eliminate double taxation on income and to prevent tax evasion and avoidance between the two countries. The DTA clarifies the taxing rights of both countries on all forms of income flows arising from cross-border business activities and addresses the double taxation of such income. This will lower barriers to cross-border investment and boost trade and economic flows between the two countries.
In August 2023, Singapore and Kenya formalised a bilateral investment treaty (BIT). The BIT promotes more significant investment flows between Singapore and Kenya by protecting the interests of Singaporean and Kenyan investors. It also gives investors greater confidence to take up investment opportunities in either country.
The treaty will take effect once the ratification instruments have been exchanged.
