The Kenyan and Turkish governments are set to sign an agreement on the avoidance of double taxation in 2014, a Turkish official said on Wednesday.
Commercial Counselor of the Turkish Embassy in Kenya Koray Demircan told journalists in Nairobi that the agreement will be signed when a high level Kenyan government delegation visits Turkey next year.
"The agreement will ensure that companies that operate in both countries only pay tax once so as to promote bilateral trade between the two states," Demircan said at the launch of the Kenya Commercial Bank developer's club tour to Turkey.
Both nations signed an agreement on trade and economic cooperation in 2004, while the first session of the Turkey-Kenya Joint Economic Commission took place in October 2010.
He added that an agreement on the protection of investments will also be signed next year. "It will enhance commercial ties in both countries as the safety of investors will be guaranteed," he said.
According to the Turkish Embassy in Kenya, Turkey exported goods worth 138 million U. S. dollars to the East African nation in 2012.
"The goods included iron and steel products for the construction industry, fertilizer, wheat flour, machinery and electronics," the Turkish official said.
Demircan noted that in 2012 Turkey imported goods worth 18 million dollars from Kenya. "The products mainly consisted of tomato seed, black tea and leather," he said.
The Turkey-Kenya Business Council had its first meeting on June 2011 and the Turkish-Kenya Businessmen Association has been operating since November 2012.
He said Turkey became a non-regional member of African Development Bank in January. "As a result, Turkish companies are eligible to undertake projects funded by the pan African Bank," he said.
The Turkish national carrier began direct passenger flights between the two countries in May 2010.
"The airline which flies seven times a week between the two nations has been instrumental in promoting trade," the diplomat said. "A cargo plane has also been operating from Turkish city of Istanbul to Nairobi since December 2012," he said.