Signing of Japan-Kenya investment agreement

NAIROBI, Kenya - On August 28, 2016, 'Agreement between the Government of Japan and the Government of the Republic of Kenya for the Promotion and Protection of Investment' was signed by Fumio Kishida, Minister for Foreign Affairs of Japan, and Henry K. Rotich, Cabinet Secretary for National Treasury of the Republic of Kenya, in Nairobi, Kenya, on the occasion of the Sixth Tokyo International Conference on African Development (TICAD VI).

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This agreement aims at further protection and promotion of investment between the contracting parties. The agreement stipulates the treatments accorded to investment activities and investments when an investor (an enterprise, etc.) of a contracting party invests in the other contracting party, such as national treatment, most-favoured-nation treatment, fair and equitable treatment, free transfers requirements, conditions for expropriation and compensation and procedures for dispute settlements.

Kenya is an economic power in Sub-Saharan Africa, as well as the transportation hub with Mombasa port functions as a gateway to the East Africa region, and attracts a growing number of Japanese companies. In response to the anticipated further promotion of infrastructure projects in Kenya, including those of the energy sector, more Japanese companies are expected to launch their business there.

In this regard, the Japanese private sector is strongly requesting the improvement of the investment climate in Kenya.