3.2: Advocate for an attractive business environment
Kenya dropped from the FATF grey list based on substantial progress on legislative and institutional structures to combat AML/CFT.Guidelines on prevention of Money Laundering and Financing of Terrorism in the Capital Markets gazetted on 4th March 2016.
A Review was carried out by Anjawalla and Khanna in June 2017 on existing framework for Double Taxation Agreements and set out areas of intervention on the following:
All the executed DTA's now require a diplomatic note to be issued by both Foreign Affairs offices to activate the treaties.Ministry of Foreign Affairs is responsible for the issuance and execution of the treaties.Currently, a report is being prepared to make recommendation on the following in regards to DTAs:
Kenya has adopted OECD standards in corporate governance and exchange of tax information.The KRA International Tax office are not currently involved in the Treaty Relief and Compliance Enhancement (TRACE) project. Steps are now being made to ensure that Kenya participates.
OECD 2016 report rates Kenya highly on compliance with the OECD standards on exchange of information.
NIFCA to develop tax incentive structure to attract international players in the market.
The NIFCA has implemented a consultancy to guide on the tax incentives to be put in place to support the establishment of Nairobi as an IFC.