Singapore and Kenya's updated tax agreement, effective 20 April 2026, establishes reduced withholding rates and clarifies permanent establishment rules, with implementation beginning in 2027 for Kenya and phased application in Singapore.
The Inland Revenue Authority of Singapore confirmed that a new income tax agreement with Kenya became operational on 20 April 2026.
This treaty, originally signed on 23 September 2024, supersedes a previous 2018 agreement that was never implemented.
The agreement applies to income tax in both nations—Kenya’s Income Tax Act (Cap. 470) and Singapore’s income tax framework and aims to eliminate double taxation on income and prevent tax evasion and avoidance between Kenya and Singapore.
Under the treaty, withholding tax rates are set at 8% for dividends, 10% for interest payments, 10% for royalties, and 10% for technical and professional service fees. Both nations use the credit method to prevent double taxation. Singapore additionally grants credits for Kenyan corporate tax paid on dividends to Singapore companies holding at least 10% ownership stakes.
Kenya will apply the treaty from 1 January 2027, while Singapore applies it to withholding taxes from 1 January 2017 and other taxes from 1 January 2028.
Earlier, Kenya’s National Assembly approved the ratification of a new income tax treaty with Singapore on 3 December 2025.
