Double taxation arises when two or more tax jurisdictions seek to impose tax on the same income or capital of a person, whether an individual or a legal entity. This typically occurs in cross-border scenarios where income is derived in one country (the source jurisdiction) and received in another (the residence jurisdiction). To address this, countries enter into Double Tax Agreements (DTAs) also known as Double Tax Treaties (DTTs) which are bilateral agreements that allocate taxing rights and mitigate instances of double taxation.

As at the date of this opinion, Kenya has ratified and brought into force Double Tax Agreements with Canada, Denmark, France, Germany, Iran, Korea, Norway, Qatar, Seychelles, South Africa, Sweden, United Arab Emirates, United Kingdom and Zambia

 In addition, Kenya has signed but not yet brought into force DTAs with the following jurisdictions the Republic of Seychelles, the Republic of Mauritius, the Republic of Italy, the State of Kuwait, the People’s Republic of China, East African Community member states, the Portuguese Republic, the Republic of Singapore and the Kingdom of the Netherlands

The table below sets out the list of countries with which Kenya has active Double Tax Agreements, including applicable withholding tax rates for dividends, interest, royalties...