Kenya-Mauritius team to ease movement of capital

The Central Bank of Kenya building in Nairobi. FILE PHOTO | NMG 

By JAMES KARIUKI

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Summary

• Kenya and Mauritius need to enhance joint ventures in manufacturing, training as well as services’ exchange to boost global competitiveness via manufacturing of products for the export market.

A joint Kenya-Mauritius Trade Commission seeking to streamline movement of capital, goods and services has started work.

Mauritius Foreign Affairs secretary UC Dwarka Canabady said it will facilitate a review of existing legal challenges faced by Kenyan companies in Mauritius and vice versus.

She said Kenya could benefit from use of the Mauritius International Financial Centre and the stringent financial laws that deter stashing of stolen cash in their banks but allowed traders and other affluent individuals to invest in the financial markets.

“Once we have Mutual Legal Agreements in place, it will be easy for us to extradite anyone accused of any crime to face trial at home. No illegally acquired wealth is stashed in our banks and all we seek is to enhance partnerships with Kenyan businesses for faster development,” she said.

Ms Dwarka said Kenya and Mauritius need to enhance joint ventures in manufacturing, training as well as services’ exchange to boost global competitiveness via manufacturing of products for the export market.

She observed that commissioning of daily flights between the two countries had boosted business-to-business executive interactions setting the stage for higher trade volumes between the two countries.

Mauritius has been a popular haven for Kenya’s wealthy with most multinational companies in Kenya having subsidiaries registered in Port Louis mostly due to its favourable tax regime with corporate tax at 15 per cent, export tax three per cent.

READ: Mauritius mobile lender targets local gadget buyers with Sh9bn

It also allows a 100 per cent foreign ownership and has nil capital gains tax among other incentives.

Kenya Investment Authority chairman Ann Kirima urged for closer co-operation especially on value addition ventures saying the Big 4 development agenda had created new openings for Mauritian companies to invest in Kenya.

“Wealth management services as well as trust and succession handling services are well developed in Mauritius and that is an area that Kenya can heavily borrow enabling local families to thrive after founders’ demise,” she said.