Dr Kituyi said Kenya needs to take a decisive position on ancient trade agreements that favour foreign investors over local investors.

Dr Kituyi currently heads the United Nations Conference on Trade and Development (UNCTAD).

“In some sectors, investors still enjoy zero-rated incentives that allow them to import items for free only to 'ship’ home their entire profits to tax havens.

“For instance, hotels import items duty-free only to ship out profits to tax havens because they say taxing them here is double-invoicing and against the signed agreements. Kenya must look at this issue as a revenue resource for its is mature enough with homemade equity firms that can invest in such industries and pay tax,” he said.

Lauding the government move on continued investment in infrastructural projects, Dr Kituyi said the gains made could best be realized if the country empowered its nascent industries to venture into mass production of key raw materials used in the manufacture of goods.

Dr Kituyi made the remarks during a trade facilitation seminar in Nakuru over the weekend.

He added that there is an urgent need to look at the national good in implementation of major projects instead of pushing for further decentralization of funds.

He said countries like South Africa had gone full-blown in throwing out decades-old agreements that favoured foreign investors thereby enabling it rethink the agreements in a way that favours local industries.

“If such a foreign company goes to the International Disputes and Arbitration Court to file a dispute, it is the Kenya taxpayer who is forced to settle the claim since as per the agreement, Kenya allowed investors to ‘ship’ out profits tax-free,” he said.