All the gains that have been harnessed through diversification of energy sources are now threatened by proposals contained in the Finance Bill 2020 which seeks to amend various laws relating to taxation and proposes amendments to the Value Added Tax (VAT) Act 2013 in order to introduce VAT on equipment used for the development and generation of solar and wind energy. Also, on the radar are taxable goods for the assembly, manufacture or repair of clean cookstoves.
If passed, the cost of solar and wind generation, as well as that of cookstoves- another clean energy source- will go through the roof with the likelihood of lowering the uptake of such products. Already, a number of health centres, dispensaries and administrative units in remote areas have solar photovoltaic (PV) systems installed to power their energy needs. Such initiatives are likely to stall.
Read more: KenyaCIC