3.2: Advocate for an attractive business environment

Measurement
All relevant agencies to take steps required by the FATF Action Plan. CMA to take any necessary steps within its own regulatory responsibilities.
Working Group
Achievement

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.

Status
Completed
Measurement
Implementation Committee to identify priority list of countries and then KRA to put DTAs in place.
Working Group
Achievement

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:

  • Existing double taxation treaties;
  • Extent of the execution of the double taxation treaties; and
  • Establish the stage of the double taxation agreement for each country.

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:

  • Identify countries that are strategic for Kenya to establish DTAs with;
  • Provide suggestions on how to address the obstacles experienced in executing DTAs; and
  • Suggestions on the provision for annual review of executed treaties.

Status
In Progress
Measurement
Kenya should adopt the standards set out in the OECD's Treaty Relief and Compliance Enhancement (TRACE) for cross-border portfolio income tax relief - Implementation Committee to review.
Working Group
Achievement

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.

Status
In progress
Measurement
Bring domestic arrangements into line with OECD Global Forum requirements.
Working Group
Achievement

OECD 2016 report rates Kenya highly on compliance with the OECD standards on exchange of information.

Status
Completed
Measurement
Implementation Committee working with National Treasury, KRA and the NIFC - potential for input under The CityUK MOU to commission review of personal and corporate tax rates and structures to assess their impact on the willingness of foreign companies and individuals to locate in Kenya and propose changes based on result of the review.
Working Group
Achievement

NIFCA to develop tax incentive structure to attract international players in the market.

Status
Time bad
Measurement
Implementation Committee working with National Treasury and KRA - potential for input under CityUK MOU to commission review of how the tax code is adapted to financial instruments and participants in financial markets and propose changes based on the result of the review.
Working Group
Achievement

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.

Status
Time bad

Key

No Progress
Behind Schedule
Ahead of Schedule