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{
    "id": 1037997,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1037997/?format=api",
    "text_counter": 399,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "that environment for being a business hub that facilitates people to lease there, do business and access global finance from within Mauritius. Unfortunately, because of being in the two places people have been suffering the double taxation. So, you are taxed in Mauritius because you are registered there and you are also taxed in Kenya because you are doing business in Kenya. This agreement was meant to resolve that problem. There are several such agreements within the different countries such as the UK, US with several countries where there is voluminous business and investments flows between the two countries. So, if you look at the Intra-African exports from Kenya, as of 2019, we were talking about Ksh5 billion worth which is something to think of. Now between Kenya and Mauritius once we ratify this agreement it is not only going to save people who are operating in Kenya, but are residents in Mauritius. They will also attract some of the business in Mauritius that can now be resident in Kenya, to trade in Kenya because they know they will only suffer lesser of the two. There is a capping formulae that is agreed upon and it basically says you choose which tax regime to pay for which is your primary tax regime. You pay that and in the other country you can only pay a little, you do not end up suffering the impact of double taxation. So, I believe that this is a positive thing and I agree with the Chair of Finance Committee that, this should have been brought within the framework of ratification of treaties between countries rather than the way it is coming. This is because, it is an international agreement for all intents and purposes. It is not just a matter of regularising the regulations; it also has the gravitas. Kenya has also been on the forefront. As much as we do not want to keep referring to the BBI Report, but at least, this House knows the content because we tabled the report here. One of the provisions within that is anchoring it into the Constitution as Kenyans are committed to regional trade and integration. This is part of that regional integration and so we are not only saying, but walking the talk that within the East African Community (EAC) and the COMESA we have a common market, going beyond and even within Africa. Going beyond those common market protocols, now we also are saying that between the two countries, we are recognising that our citizens and our businesses operating within those two countries will be insulated from double taxation. I think this is a good move. We support it and hope it will send a signal to investors in both countries that Kenya is the place to do business. Like I said the day before yesterday, on the Floor of this House, and the President alluded to this in his State of the Nation Address, Kenya is currently ranked number 56 in terms of doing business globally. There is an intention of moving to top 30 by 2022. Mauritius and Rwanda went that route. The more we go higher in ranking, the easier it is to do business. This is because there is no corruption in the country and all parameters that ease the cost of doing business are met. We will then attract foreign direct invest which is required to create jobs in this country, so that our hardworking youth or population, who are highly educated and recognised on a global basis; can move from manual work to leaping the benefits of why they went to school and the skills they have developed. This is by working not just in Kenya, but within the region because they are exposed to regional integration. With those few remarks, once again I thank the Departmental Committee because they are doing a super job. I want to single out their Chair who is not exactly finance oriented, but has been talking more finance than people who are trained in finance. Congratulations Hon. Wanga. I think you have done a super job in that Committee. It shows leadership is not just about the technical knowledge of the subject matter. It is about leading the people to extract the expertise in the Committee and share it with the rest of the House. I beg to support. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}