A historic tax and economic event occurred this week in Mauritius when during a working session, following deliberations by the First Joint Commission for cooperation between Mauritius & Kenya, six important agreements were signed. These included:

 A new Double Taxation Agreement “(DTA)”;
 An Investment Promotion and Protection Agreement;
 A Memorandum of Understanding (MOU) on cooperation for Development of special Economic Zones and Export Processing Zone in Kenya;
 A Memorandum of Understanding (MOU) in the field of Tourism;
 A Memorandum of Understanding (MOU) in the field of Scientific Research;
 A Memorandum of Understanding (MOU) in the field of Arts & Culture.

The most important of these agreements was the DTA which will enable the two countries to rectify the administrative glitch which occurred earlier this year in Kenya when the High Court of Kenya on 15th March 2019 invalidated the previous Kenya Mauritius DTA pursuant to a petition filed by the Tax Justice Network – Africa with the court. This was due to a failure by the Kenyan cabinet secretary in charge of finance to table the legal notice which would have given the DTA effect before the National Assembly as required by the Statutory Instruments Act, 2013 of Kenya, within 7 sitting days of being published in the Kenyan Gazette.

In a statement to the press the Prime Minister Jugnauth underlined that the visit of President Kenyatta is a testimony of the excellent relations that both countries share. He also stated that the DTA and IPPA will promote greater economic cooperation and protection of investment between both countries and mentioned that the signed agreements will boost economic development and create employment opportunities.

For his part, the president of the Republic of Kenya, Mr. Uhuru Kenyatta, affirmed that this important historical state visit will strengthen the ties between the two countries and through this enhanced collaboration both countries will have the tremendous opportunity to work together and build strategic cooperation and acquire productive results.

All parties now await, for the new DTA to be laid before the Kenyan House of Parliament within 7 sitting days of being published as a legal notice in the Kenyan Gazette. We expect the new DTA once enjoying legal force and effect to further boost economic trade and exchanges between both countries.