On 21 September 2017, Kenya and China signed a Double Taxation Agreement (DTA) that aims to boost bilateral commercial ties, Kenyan officials said.
Cabinet Secretary in the National Treasury Henry Rotich told a media briefing in Nairobi that the deal will create certainty to the tax payers on the taxation of various cross-border incomes derived from either country.
“The agreement aims to boost trade and investments between China and Kenya by ensuring investors who pay tax in one jurisdiction should not pay tax again in the other jurisdiction,” Rotich said.
He added the deal will increase the flow of Chinese capital into Kenya as Chinese investors will find Kenya as a favorable taxation regime. He noted that the agreement comes at an ideal time when Kenya is wooing Chinese investors looking for low cost manufacturing destinations.
