The DTAs between Kenya and South Africa and between Kenya and Mauritius had been signed by the three countries and were due to be implemented at the start of this year.
However, Kenya failed to notify other contracting states of the changes in time for the treaties to come into force, meaning the earliest the treaties can come into force is now 1 January 2016, provided Kenya completes the notification procedures this year.
The agreements mean international investors would not have to pay tax twice on the same income, which would thus encourage foreign investment into Kenya through Mauritius and South Africa.
Parties were “looking forward” to it coming into force, said UK-based chartered accountants, Grant Thornton, “but will now have to wait until 2016 to see such benefits accruing”.
