On 21 March 2023, Kenya's Cabinet approved the ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). After the internal ratification process is completed, Kenya must deposit its ratification instrument to bring the MLI into force for its covered agreements (tax treaties).

The MLI will generally enter into force for a particular covered agreement on the first day of the month following a three-month period after both parties to the covered agreement have deposited their ratification instrument. With respect to the effect of the MLI, Kenya has taken the reservation that for the MLI to become effective, Kenya must first deposit a notification that it has completed its internal procedures for the entry into effect of the MLI for a particular covered agreement. As such, the provisions of the MLI will generally apply for a covered agreement:

• in respect of withholding taxes, from the first day of the next calendar year that begins on or after 30 days after the date of deposit of the notification by Kenya (or by the respective counterparty if the same reservation is taken); and
• in respect of other taxes, from the taxable period beginning on or after the expiration of a six-month period from 30 days after the date of deposit of the notification by Kenya (or by the respective counterparty if the same reservation is taken).

Click the following link for Kenya's provisional list of reservations and notifications at the time of signature. A definitive list will be provided when the ratification instrument is deposited.