TJN-A Meets The Press On November 2nd

Venue: Sarova Panafric Hotel, Nairobi

Time: 10:00am prompt
TJN-A will hold a press briefing on Monday, November 2, 2015 at the Sarova Panafric Hotel at
10:00am in Nairobi, Kenya on the litigation over Kenya Government's signing of Double Tax
Agreement with Mauritius, the implosion of Imperial and Dubai banks, the ongoing financial
crunch and their implications on the Kenyan as well as the larger East African economy.
Brief background
Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically
the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) in a
Nairobi High Court challenging the constitutionality of the Kenya/Mauritius Double Taxation
Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal
Notice 59 published in the Kenya Gazette of May 23, 2014.
The Agreement will significantly undermine Kenyas ability to raise domestic revenue to underpin
the countrys development as it opens more loopholes for companies operating in the country and
super rich individuals to shift profits abroad through Mauritius to avoid appropriate taxes. For
example provisions under Article 11 of the Agreement relating to interest limits Kenyas
withholding tax to 10 per cent whereas Kenyan domestic rate currently stands at 15 per cent. This
will significantly affect the tax base of the Kenya Revenue Authority (KRA).
The Agreement also c sharply contravenes Articles 10 and 201 of the Constitution and is
inconsistent with the principles of good governance, sustainability and accountability. The
Agreement is open to abuse which could endanger the growth and development of the country.
Counsel for TJN-A is Gitobu Imanyara & Co. Advocates.
This specific press briefing will address the hearing of the case on November 2nd. The briefing will
also explain the collapse of Imperial and Dubai banks, the ongoing financial crunch and the
possibility of these crises worsening because of two new damaging Double Tax Agreements Kenya
has signed with the United Arab Emirates and Qatar, two countries which have positioned
themselves as tax havens that could allow multinational companies operating in Kenya to avoid
paying their fair share of taxes to Kenya.
For further enquiries, please email Kwesi Obeng (kobeng@taxjusticeafrica.net) or Michelle Mbuthia
(mmbuthia@taxjusticeafrica.net).