Kenya, Mauritius deal: Did Uhuru go against taxation court order?

President Uhuru Kenyatta with Mauritius Prime Minister Pravind Kumar Jugnauth
President Uhuru Kenyatta with Mauritius Prime Minister Pravind Kumar Jugnauth.

President Uhuru Kenyatta’s visit to Mauritius may have stoked an unintended legal crisis back home after ignoring a court ruling invalidating an earlier agreement on double taxation.

Among the six treaties signed between Kenya and the Indian Ocean island nation during his just-concluded four-day State visit, was the Double Taxation Avoidance Agreement (DTAA) which the High Court ruled as unconstitutional last month.

Re-signing the treaty, which it was not immediately clear whether it had been amended in any way since it was first signed in 2012, would mean that the President expressly disobeyed the court’s ruling.

A statement from Port Louis, the Mauritius capital, confirmed the signing of the treaty meant to cushion investors from double taxation on income earned by a resident of either nation.

“During the bilateral talks, President Kenyatta and Prime Minister Pravind witnessed the signing of several agreements, including the Double Taxation Avoidance Agreement (DTAA), an Investment Promotion and Protection Agreement (IPPA) and an MoU on Cooperation for the Development of Special Economic Zones (SEZs) and Export Processing Zone in Kenya,” said State House in a statement.

The High Court had based its ruling on the fact that there was no public participation in the drafting of the controversial agreement while the National Assembly had not ratified it.

The 2012 agreement provided companies with the option of paying taxes in one legal jurisdiction in a bid to make Kenya more attractive to external investors.

 It was, however, contested by tax lobby Tax Justice Network Africa (TJNA) which sued the Treasury and the Kenya Revenue Authority (KRA) in 2014, arguing the deal signed in Mauritius’ Port Luis was not ratified by Parliament and was thus unconstitutional.

TJNA further argued that the agreement would erode Kenya’s revenue base by giving companies a legal leeway to shift their profits to Mauritius to avoid paying taxes in Kenya.

The latest development now raises concern among investors as to whether the agreement can be enforceable in Kenya where the Judiciary enjoys significant independence compared to other jurisdictions.

Justice Weldon Korir in his ruling last month had indicated that the agreement had ceased to have an effect and effectively became “void in accordance with the Kenyan law”.

Besides the procedural technicality informing the ruling, the applicants had challenged the fairness of the DTAA which they claimed encouraged tax avoidance.

The lobby said while such agreements may be well-intended, they are widely abused by investors driven by the desire to avoid paying taxes in either country.

“Evidence has shown that contrary to their objectives, these DTAAs have led to double non-taxation and resulted in massive revenue leakage for African countries,’’ said TJNA Executive Director Alvin Mosioma.

President Kenyatta concluded his four-day official visit to Mauritius on Friday.

The visit was intended to foster better relations, especially surrounding investment and trade.

Besides the DTAA, the President also signed the Investment Promotion and Protection Agreement, MoUs on tourism, higher education and scientific research as well as in arts and culture.  


  • If you want to improve your know-how just keep visiting this
    web site and be updated with the latest news update posted here.

  • Having read this I believed it was very informative. I appreciate you finding the time and effort to put
    this content together. I once again find myself spending a lot
    of time both reading and posting comments. But so what,
    it was still worth it!

  • I think the admin of this web page is genuinely working hard in favor of
    his site, for the reason that here every stuff is
    quality based stuff.

  • Hi it’s me, I am also visiting this web page daily, this site is truly fastidious
    and the people are genuinely sharing pleasant thoughts.

  • Does your blog have a contact page? I’m having problems locating it but, I’d like to shoot you an e-mail.
    I’ve got some ideas for your blog you might be interested in hearing.

    Either way, great website and I look forward to seeing it expand over time.

  • Since the admin of this web page is working,
    no question very quickly it will be renowned, due
    to its feature contents.

  • Right here is the perfect site for anybody who really wants to find out about this topic.
    You realize so much its almost tough to argue with you (not that I personally will need
    to…HaHa). You definitely put a brand new spin on a subject that’s been discussed for
    decades. Great stuff, just wonderful!

  • Amazing issues here. I am very satisfied to see your post.
    Thank you so much and I’m looking forward to contact you.

    Will you please drop me a e-mail?

  • Yes! Finally something about web hosting.

  • Great site you’ve got here.. It’s difficult to find excellent writing like
    yours nowadays. I honestly appreciate people
    like you! Take care!!

  • Wow! This blog looks just like my old one! It’s on a entirely different topic but it has
    pretty much the same page layout and design. Great choice of colors!

  • I have been exploring for a bit for any high-quality articles or blog posts on this
    kind of area . Exploring in Yahoo I finally stumbled upon this website.
    Studying this info So i am happy to exhibit that I have a very just right uncanny feeling I found out exactly what I needed.
    I most indubitably will make sure to do not omit this website and provides it a
    look regularly.

  • Thanks for the marvelous posting! I really enjoyed reading it, you will
    be a great author. I will be sure to bookmark your blog and will often come back
    from now on. I want to encourage that you continue your great
    job, have a nice day!

  • I like it whenever people come together and share views.
    Great website, keep it up!

  • We are a gaggle of volunteers and starting a brand new scheme in our community.
    Your website provided us with helpful info to work on.
    You have done an impressive activity and our entire group will probably
    be thankful to you.

  • Terrific article! This is the type of information that are supposed to
    be shared across the web. Shame on Google for now not positioning
    this put up upper! Come on over and seek advice from my site .
    Thank you =)

  • I like the helpful info you provide for your articles. I’ll
    bookmark your blog and test again here regularly. I’m slightly sure I will be informed lots of
    new stuff proper here! Good luck for the following!

Leave a Reply

Latest news