Members of Parliament in Kenya have approved a bilateral tax treaty with Singapore aimed at eliminating double taxation and curbing tax evasion, a move experts say will enhance investor confidence, boost trade, and deepen economic cooperation between the two countries.
The agreement, formally signed on December 23, 2024, during the United Nations General Assembly in New York by the Cabinet Secretary for Foreign and Diaspora Affairs, ensures that income earned in either Kenya or Singapore is taxed only once. Lawmakers say the framework offers certainty and predictability for businesses and investors operating across the two jurisdictions.
The National Treasury led negotiations for the treaty in June 2023, crafting the deal to strengthen economic ties, improve tax administration, and block tax avoidance practices such as treaty shopping. MPs noted that the agreement will help Kenyan firms integrate more effectively into global trade networks while attracting foreign direct investment into key sectors, including finance, logistics, infrastructure, and emerging digital industries.
Kitui Rural MP David Mwalika, who tabled the report recommending adoption of the treaty, assured Parliament that the agreement does not undermine Kenya’s fiscal sovereignty.
“Instead, it enhances productivity, transparency and administrative cooperation in applying tax rules between the two countries,” he said.
“Considering the benefits outlined and having met all legal requirements, the committee [Finance and National Planning] recommends that the House approve the ratification of this agreement in accordance with Section 8 of the Treaty Making and Ratification Act,” he added.
Kilifi North MP Owen Baya pointed out the treaty’s role in addressing tax evasion by removing the burden of double taxation.
“When someone feels that there is double taxation or is being overtaxed, the first thing he wants to do is to evade the tax. But once we enter into this bilateral agreement, we will eliminate double taxation and have only one form of taxation,” Baya said.
He further linked the pact to President William Ruto’s broader economic vision of transforming Kenya into a high-income economy comparable to Singapore.
“I love the dream the President has. Significantly, we can transform this country into a First World country within our time. It is by ensuring we have more income from exports and investments coming into the country. That way, the dream of being a First World will become a reality. I believe we can be a Singapore in Africa and boast about it,” he added.
President Ruto has consistently underscored the role of large-scale financing mechanisms such as the National Infrastructure Fund (NIF) and the Sovereign Wealth Fund in driving Kenya’s economic transformation.
Authorities expect the NIF alone to mobilize up to Sh5 trillion to finance major infrastructure and development projects critical to long-term growth. The President argues that disciplined reforms, strategic investments, and strong global partnerships can help Kenya replicate Singapore’s rapid development model.
Trade figures underscore the growing economic relationship between the two countries. In 2024, trade between Kenya and Singapore stood at approximately $149 million. Kenya’s exports to Singapore included coffee, tea, and spices valued at $1.47 million; ores, slag, and ash worth $0.99 million; edible nuts and fruits totaling $1.7 million; and plants and flowers valued at $0.68 million.
Imports from Singapore into Kenya reached $41.24 million, with machinery and boilers accounting for $5.08 million, plastics $6.4 million, man-made fibers $5.13 million, and chemicals $3.97 million.
Singapore’s total exports to Kenya amounted to $108.2 million, dominated by industrial goods such as machinery and nuclear reactors valued at $3.34 million, plastics worth $14 million, and man-made fabrics and other industrial products totaling about $60 million.
Lawmakers and economists believe the ratified tax treaty will further unlock trade and investment opportunities, positioning Kenya as a more competitive and predictable destination for global capital while strengthening its economic partnership with Singapore.
