National Workshop on Profit Shifting in Kenya
Nairobi, 21 November 2025
Opening Remarks by Douglas Kigabo
Distinguished guests, representatives of government institutions, and members of the private sector in Kenya,
It is an honour to join you today, representing the ECA, to discuss the critical issue of profit shifting in Kenya. This initiative forms part of ECA’s broader support to member States in strengthening domestic resource mobilization (DRM).
As we all recognise, the current global financial landscape, marked by declining ODA, rising debt costs, increasing financing needs for post-crisis recovery, and the imperative of inclusive growth and economic transformation; requires Africa to look inward. Enhancing DRM is therefore essential.
ECA supports member States in advancing DRM through several interconnected workstreams, including rationalizing unproductive tax incentives, curbing illicit financial flows such as trade mis-invoicing, and reducing tax losses arising from profit shifting.
Our support is delivered through ECA’s three core mandates: (i) generating knowledge products, (ii) providing operational and capacity-building assistance, and (iii) playing a convening role.
Today’s workshop sits within the knowledge-generation mandate. We will discuss the findings of a study on profit shifting in Kenya, identify key actors and practices, and explore policy options to address these challenges. Building on the outcomes of today’s discussions, ECA and RRA may consider further opportunities to support the implementation of key recommendations, helping translate the report’s findings into actual revenue gains and reduced tax losses.
Moreover, the issue of profit shifting is central to ongoing global debates on establishing a UN-led International Tax Cooperation Framework; one that promotes fair and effective taxation of multinational enterprises and ensures that taxes are paid where economic activity takes place.
I wish you all a productive and insightful discussion.