Foreign Affairs Cabinet Secretary Monica Juma says the move is aimed at eliminating double taxation.
Juma and her Mozambique counterpart Jose Antonio Pachecho have constituted a Joint Commission of Cooperation tasked with this mandate ahead of the State Visit by Mozambique President Filipe Nyusi who will be hosted by President Uhuru Kenyatta in Nairobi, Wednesday.
“The double taxation agreement is still under consideration, it’s one of the areas that we expect finalization in the next couple of months and we hope that by the time we come to the second JCC meeting there will be a lot of projects registered,” she said.
The two countries are also working on modalities to lift visa restrictions.
Trade between Kenya and Mozambique has continued to register steady growth over the years, with Kenya’s total export to Mozambique increasing from $ 6.61 million in 2007 to $ 11.8 million in 2017.
Kenya’s major exports to Mozambique include prefabricated buildings, plastic items, animal and vegetable fats, tableware, kitchenware, fruit and vegetable juices among others.
Imports from Mozambique include sugar, molasses and honey, aluminium, coal and non-ferrous base metal among others. President Uhuru Kenyatta visited Mozambique in March to promote trade, enhance bilateral relations.
During the visit, the leaders witnessed the signing of two broad agreements covering political and economic cooperation – which will be the heart of closer cooperation between the southern African Portuguese-speaking country and the East African economic giant.
President Kenyatta said the two agreements will kick-start the relations that would link the Swahili Coast from Maputo to Lamu.
Kenya and Mozambique also resolved to broaden their cooperation areas of mutual interest including the minerals and mining sector, livestock breeding, trade, tourism promotion, agri-business, manufacturing and value addition, and the Blue economy sector.