Kenya Terminates Bilateral Investment Treaty with the Netherlands

BITs, as well as multilateral treaties like the Energy Charter Treaty, have long been criticized 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 pursue 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 favor of social and environmental justice.

 Susan Otieno, executive director ActionAid Kenya:

"ActionAid Kenya strongly believes that 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."

Bart-Jaap Verbeek, senior researcher SOMO:

“Kenya’s decision to terminate its BIT with the Netherlands is a crucial step toward breaking free from outdated investment treaties that prioritize corporate profits over public goods.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 center of investment policies.”

Fernando Hernandez, policy advisor at Both ENDS:

“Both ENDS welcomes Kenya's decision to terminate the BIT with the Netherlands. This sets a strong precedent for climate justice and the need for a different investment framework. Kenya's leadership, alongside similar actions in Europe, i.e. the EU’s exit of the Energy Charter Treaty, reflects a growing commitment to prioritising people and the planet. CSOs are key in pushing for these changes, ensuring fairer policies and their voices shape sustainable frameworks.”