Cabinet Approves Kenya-Singapore Deal Eliminating Double Taxation

Following a trade agreement signed last year between Kenya and Singapore to eliminate double taxation, the Cabinet has formally approved the deal, strengthening economic ties between the two nations.

The ratification also enables Kenya to prevent fiscal evasion in cross-border transactions with Singapore.

”Cabinet approved the ratification of an agreement with Singapore to eliminate double taxation and prevent fiscal evasion, further strengthening Kenya’s global trade and investment ties,” read part of the dispatch. 

The deal will replace a similar agreement established in 2018 when the two nations first formalized their trade relations.

With the ratification, businesses with permanent establishments in either country will benefit from deductions on trade-related expenses, including administrative, executive, and general business costs, preventing double taxation on cross-border profits. 

However, exceptions will apply to certain industries, notably banking, to prevent the exploitation of royalties and interest payments.

Further, the Cabinet, during the meeting held at State House, Nairobi, under the leadership of President William Ruto, approved several host country agreements with other nations to help reinforce Kenya’s role as the hub for international organisations. 

These include agreements with the International Institute for Democracy and Electoral Assistance, Save the Children International, Shelter Afrique Development Bank, Oxfam International, Norwegian Refugee Council, and Population Services International, among others.

Additionally, it is now official that Kenya will host the International Air Transport Association (IATA)  Ground Handling Conference (IGHC) which is scheduled to take place in Nairobi, Kenya, from May 12 to 16, 2025.

”Cabinet also endorsed Kenya’s hosting of the International Air Transport Association (IATA), underscoring the country’s commitment to enhancing international cooperation and economic diplomacy,” the dispatch added.

The conference will aim to address critical issues in the aviation sector, with a focus on fostering collaboration and innovation to shape the future of air transport and the ground-handling industry, according to an official statement from the Ministry of Tourism. 

The conference will also see over 800 delegates, including key airline decision-makers attend the meeting even as Kenya hopes to attract more investments in the sector.