The use of tax havens in the ownership of Kenyan petroleum rights
As an emerging petroleum producer, Kenya has the opportunity to use the benefits of its natural resource wealth to further economic and human development.
The main factor within the government’s control that will determine the amount of potential government revenue from Kenya’s petroleum wealth is the set of fiscal (tax) terms offered to international oil companies to explore for new sources of oil and natural gas.
There is growing concern among resource-rich developing countries in Africa and beyond that multinational companies are employing aggressive tax avoidance strategies in order to increase their share of divisible revenue. Of the potential mechanisms through which companies seek to minimize their revenue payments to governments, an area of concern is the use of subsidiaries registered in tax havens.
This report reveals the widespread use of tax havens and low tax jurisdictions in the corporate structures of companies holding petroleum rights in Kenya.