Kenyan and Korean negotiators are in Seoul putting the finishing touches on new tax and investment deals that will spur investment in the East African nation and strengthen trade ties.
Kenyan Ambassador to Korea Ngovi Kitau confirmed that a Kenyan team of negotiators have been in Seoul since Tuesday, meeting with their Korean counterparts to complete the tax and investment deals.
Trade with Kenya, albeit still tiny in comparison to Korea’s other trade partners, has seen a steady increase over the past 12 years. Two-way trade was $40 million in 2000, but grew to some $240 million in 2011, according to the Ministry of Foreign Affairs. That is an approximate 600 percent increase ― no small accomplishment.
The tax deal eliminates the problem of double taxation which causes a significant loss of income to Korean corporations doing business in Kenya and deters foreign direct investment.
Samsung is set to open an electronic assembly plant in Kenya by year’s end, positioning the Kenyan capital city of Nairobi as a major site for the electronic giant’s operations in East Africa.