Bilateral investment treaty to enhance protection for Singapore companies in Kenya and boost cross-border investments
A bilateral investment treaty (BIT) between Singapore and Kenya, signed in 2018, officially came into force on August 20, 2023, with the goal of fostering increased investment flows between the two nations. This treaty grants Singaporean companies operating in Kenya additional protection for their investments, supplementing the safeguards already provided under Kenya’s domestic laws.
The treaty outlines several key benefits for investors from both countries, including the assurance of fair and equitable treatment, full protection and security based on customary international law, and protection from the unlawful seizure of property. Furthermore, investors will benefit from non-discriminatory treatment compared to other foreign investments and the freedom to transfer capital and returns in and out of the country.
Kenya, with its strategic position as the largest economy in the East African Community and one of the biggest maritime ports in Sub-Saharan Africa, is a significant trading partner for Singapore. In 2022, Kenya ranked as Singapore’s ninth-largest trading partner in Sub-Saharan Africa, with bilateral trade in goods reaching S$212.2 million.
The agreement marks a significant milestone in the economic relationship between the two nations. Singapore’s Prime Minister Lee Hsien Loong, during his May 2023 visit to Kenya, expressed support for the treaty and other agreements aimed at advancing cooperation in sustainability, skills development, and the digital economy. These agreements, alongside the ratification of the BIT, will provide businesses with greater clarity and encourage further investment and cross-border transactions.
