Tax Justice Network-Africa has sued the Government of Kenya in the High Court challenging the constitutionality of the Kenya-Mauritius Double Taxation Avoidance Agreement (DTAA) signed in Port Louis, Mauritius in May 2012.
The DTAA allows firms registered in the two countries to pay taxes in only one country.
It also allows Mauritian companies owning at least a tenth of a Kenyan firm to pay withholding tax on dividends of only five per cent instead of the 10 per cent that applies to companies from other countries.
