Singapore and Kenya sign three new deals, move investment treaty forward

Singapore and Kenya have agreed to bring into force a bilateral investment treaty and an avoidance of double taxation agreement that had been signed earlier, paving the way for greater trade and investment activity between the two countries.

- Lim Yan Liang

On Thursday, Prime Minister Lee Hsien Loong and Kenyan President William Ruto also witnessed the inking of three deals between both sides on sustainability, skills development and the digital economy. The signings took place at the State House in Nairobi, after a welcome ceremony for PM Lee and meetings, during which the two leaders reaffirmed the warm and longstanding relations between both countries.

The memorandum of understanding (MOU) on climate change will see the two countries collaborate on carbon credits and greenhouse gas reduction under Article 6 of the United Nations' Paris climate agreement.

Article 6 encourages countries to work together voluntarily to pursue more ambitious targets for cutting greenhouse gas emissions under their nationally determined contributions (NDCs).

The other two MOUs will see Singapore and Kenya expand cooperation in the information and communications technology space in new areas such as cyber security, as well as in skills development through knowledge sharing and capacity-building activities.

At a press conference following their meeting, PM Lee welcomed the taking effect of the bilateral investment treaty and avoidance of double taxation agreement, and hoped it will occur as soon as possible. This will send a strong signal to businesses and provide clarity and assurance on cross-border transactions and investment, he said.

The two leaders had agreed during their meeting to speed up the operationalisation of the two agreements, which were signed when then Deputy Prime Minister Tharman Shanmugaratnam visited Kenya in 2018.