Kenya and Singapore have taken a significant step towards strengthening their economic relations with the signing of a new agreement aimed at eliminating double taxation on income and preventing tax evasion and avoidance.
Prime Cabinet Secretary Musalia Mudavadi announced the milestone on the sidelines of the United Nations General Assembly (UNGA) after signing the agreement with Singapore’s Minister for Foreign Affairs, Dr. Vivian Balakrishnan.
The new accord, which supersedes a 2018 agreement, is expected to enhance bilateral economic cooperation between the two nations.
“This progressive accord marks a significant step forward in enhancing bilateral economic relations,” said Mudavadi. “It provides clarity on the taxation of cross-border income and establishes a robust framework to prevent the double taxation of businesses and individuals engaged in transnational activities.”
The agreement is designed to reduce barriers to cross-border investments, making it easier for businesses and individuals to operate in both countries.
Once ratified by both Kenya and Singapore, the Double Taxation Agreement (DTA) is anticipated to foster increased trade, investment, and economic cooperation.
Mudavadi expressed optimism about the future benefits of the accord, stating, “We expect this DTA to bolster mutual growth and deepen the economic partnership between Kenya and Singapore.”
The new agreement is a key part of Kenya’s broader strategy to strengthen its global economic ties and attract international investment, particularly in sectors such as technology, trade, and infrastructure.