Introducing TJNA’s Podcast Series: Tax Conversations Africa, Unpacking Double Taxation Agreements in Kenya

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Kenya seeks to rely on tax revenue in order to fund its development, social and economic obligations to its citizens. As the country seeks to collect even more taxes to achieve this, it is grappling with increased pressure from citizens for greater transparency in tax collection and expenditure, with particular emphasis on sealing revenue leakage loopholes. 

While there are many illegal ways in which the country loses revenue, tax avoidance is one of the legal ways by which foreign and local companies do not pay their fair share of taxes. A key feature used by companies in tax avoidance are Double Taxation Agreements (DTAs). 

In the past 5 years, TJNA has sustained research and advocacy on DTAs and their impact on the domestic resource mobilization efforts of African countries. Some of the notable works include a 2019 court victory where Kenya’s High Court voided a Kenya-Mauritius DTA was voided and declared it unconstitutional. 

TJNA seeks to continue these efforts by raising awareness Kenya’s current and previous DTAs. This is most critical, especially as Kenya is currently developing its national tax policy. International tax treaties are a key segment of the policy. The draft national policy highlights some of the current issues with DTAs as the following: 

  1. The lack of a DTA policy to guide negotiations  

  1. The lack of mechanisms to address tax abuse and Base Erosion and Profit Shifting (BEPS) by multinational enterprises (MNEs)  

  1. The need for increased technical capacity on international taxation 

To further boost advocacy efforts, TJNA hosted a 3-part podcast series on DTAs. The podcast series will provide a platform to raise awareness on emerging DTA issues with a view to influencing the development of Kenya’s national tax policy on DTAs.  

The podcast series focuses on an in-depth review of double taxation agreements in Kenya. The featured topics are; 

  • Trends in Double Taxation Agreements in Kenya by Catherine Ngina Mutava, Lecturer at Strathmore University  

  • The relationship between double taxation agreements and investment policy by Mary Ongore, Committee of fiscal studies at the University of Nairobi 

  • Dispute Resolution on Double Taxation Agreements in Kenya by Kivindyo Munyao, Dispute Resolution Associate at Triple Ok Law LLP  

Listen to the podcast preview: tjna.me/3J9fuhw   

For more information, contact emuendo@taxjusticeafrica.net 

Photo Courtesy: Business Daily