(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.

(PHOTO CREDITS: Courtesy DAILY NATION)

In the State of the Nation address on Thursday, President Kenyatta vowed to continue the war on corruption.

This would ensure development and justice by protecting public resources from mismanagement and plunder.

Prior to the speech, he President had made a strongly-worded statement that rich Kenyans, whose lifestyles do not reflect their tax returns, should disclose their sources of wealth.

Both statements point to growing inclinations by the national government to work towards tax justice in collaboration with other ongoing initiatives such as anti-corruption, anti-money laundering and counter-terrorism financing.

(PHOTO CREDITS: Courtesy DAILY NATION)

Last week’s terrorist attack in Nairobi provides an opportunity to strengthen Kenya’s anti-money laundering and counter-terrorism financing (AML/CTF) frameworks.

Then, President Uhuru Kenyatta promised that security agencies “ … will seek out every person that was involved in the funding, planning and execution of this heinous act”.

Recall that, on Jamhuri Day, last year, he said his government was keen to prevent illicit financial flows.

Money laundering and terrorism financing are major elements in the execution of terrorist plots.

(PHOTO CREDITS: Courtesy THE STANDARD)

Lobby groups have played down the recent new tax measures unveiled by Treasury, saying it was unlikely to grow government revenue.According to the Institute of Public Finance Kenya and the East African Tax and Governance Network (EATGN), the new Income Tax Bill might be unveiled by Cabinet Secretary Henry Rotich sticks to old models of raising revenues that only tend to protect the rich, but are punitive to the poor and small businesses.The tax lobbies reckoned that Treasury should give poor Kenyans and small and medium enterprises breathing room and instead tax the rich as well as exploring modalities of roping digital companies into the tax bracket.