It’s been an interesting couple of days here at Strathmore University Business School in Nairobi. I’m at a conference to launch the School’s new Tax Research Centre, which has brought together tax officials, tax practitioners and academics to address some critical issues for Kenya, including anti-avoidance, taxing multinationals and tax treaties. The quality of discussion is very high, and certainly banishes the notion that there is no technical expertise in developing countries.
I was asked to speak on the title above, and my presentation is below. There was a fascinating exchange when I put up the slide showing Kenya’s current treaties. Not one person, including the tax advisers in the room, thought Kenya should ratify the treaties it has signed with Mauritius and the UAE.And nobody was even aware that a treaty had been signed with Iran! Interestingly, in contrast to the academic literature, the participants here took it as self-evident that tax treaties have no impact on the levels of inward investment into a country. But now Kenyan companies are starting to expand abroad, some people did advocate treaties to encourage this outward investment.