(PHOTO CREDITS: Courtesy THE EAST AFRICAN)
Seven years ago, Kenya signed a Double Taxation Avoidance Agreement (DTAA) with Mauritius in the quest to promote foreign direct investment (FDI) flows into the East African nation.
The agreement sought to put the competitiveness of Kenyan companies at par with those of other African countries that already had tax treaties with Mauritius and to streamline tax effectiveness.
On analysing the treaty, Tax Justice Network Africa (TJNA), a pan-African research and advocacy organisation, had a contrary opinion to claims of mutual benefits for both governments.
Tax Justice Network found that the DTAA would undermine tax revenue mobilisation while delivering little benefit on the competitiveness front.
