Kenya terminates Bilateral Investment Treaty with the Netherlands

The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection.

Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare. The Dutch Minister for Foreign Trade and Development recently confirmed(opens in new window) that Kenya unilaterally ended the treaty in December 2023, rendering it inoperative from 11 June 2024. Kenya now joins South Africa, Tanzania, and Burkina Faso as the fourth African country to terminate its BIT with the Netherlands.

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Investment and trade should not be governed by agreements that grant more power to investors and corporations than to host states and communities. Investments should contribute to sustainable development, particularly benefiting women and young people, and must not harm people or the environment. If the two countries proceed with negotiations for a new treaty, ActionAid calls for full public participation and transparency, ensuring citizens have a voice in the process. Investments should not negatively impact human rights or the environment, and international agreements must not hinder any country’s ability to protect these critical areas.

Susan Otieno

Executive Director ActionAid Kenya

BITs, as well as multilateral treaties like the Energy Charter Treaty, have long been criticised for allowing multinational corporations to use investor-to-state dispute settlement (ISDS) mechanisms to challenge public interest regulations, limiting a country’s ability to responsibly govern in sectors such as natural resources, energy, and infrastructure – areas vital for sustainable development.

Kenya’s move to terminate its treaty with the Netherlands opens the door to pursuing more equitable and sustainable partnerships that prioritize people and the environment over corporate profits. It also aligns with international efforts to reform investment policies to better support sustainable development goals and climate action, both of which Kenya has committed to under international frameworks.

As more countries in Africa and beyond reconsider their investment treaties, Kenya’s leadership in terminating this BIT with the Netherlands sets an encouraging precedent for countries seeking to reform global investment rules in favour of social and environmental justice.

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This is a crucial step toward breaking free from outdated investment treaties that prioritize corporate profits over public goods. This move sets a powerful example for other countries seeking to reclaim their sovereignty and prioritize sustainable development. It is time for nations worldwide to follow Kenya’s lead and put people, not profit, at the centre of investment policies.

Bart-Jaap Verbeek

Senior Researcher