Nairobi 2nd July 2021: The Clean cooking Association of Kenya (CCAK) commends the Government of Kenya for the reinstatement of VAT exemptions on a range of clean cooking fuels, including; biogas and biogas equipment, sustainable fuel briquettes, and ethanol, which are critical to achieving the country’s climate and development goals. This was achieved after intense lobbying by Clean Cooking Alliance, CCAK and other stakeholders working together to advocate for this important milestone.
Nairobi, Kenya, 17th December 2020, on 31st June 2020, The Finance Act 2020 was signed by the President of the Republic of Kenya introducing a VAT on items previously exempted by law. Among others, the Act introduced a VAT of 14% to Clean Cooking, Solar and Wind Products thus slowing down the Government’s effort of ensuring 100% of the population having access to electricity by 2022 and clean cooking solutions by 2030. Currently, 8.1 million Kenyans are still living without electricity, while 92% of the rural population relies on wood fuel for cooking which is harmful to their health1. To meet these targets the Act must be amended to reinstate VAT exemptions for clean cooking and solar products.
The national government recently proposed new tax incentives to cushion consumers and businesses due to the COVID 19 pandemic.
Governments all over the world, including the Kenyan government, have been obligated to choose between health and economy, forcing them to take drastic measures to save lives.
On March 25, 2020, President Uhuru Kenyatta announced various measures to help Kenyans cope with the ongoing coronavirus crisis.
It has been eight weeks now since the Kenyan government announced the national dusk to dawn curfew, and we’ve just passed close to 45 days of partial lockdown with the news that selected areas are going into harder lockdown.
This has affected a lot of businesses, including the clean cooking sector. As people are encouraged to isolate more and stay at home, this requires people to cook more often than they usually do, therefore, one might expect the demand for clean cooking technologies and fuels to increase.
In the the midst of loud headlines about COVID-19 and the occasional political noises, a heated debate is underway about an attempt by the government to introduce controversial new taxes in the newly published Finance Bill.
A group of six civil society organisations have now petitioned the National Assembly, protesting the plan by the government to impose Value Added Tax (VAT) on clean energy solutions including solar equipment, clean cooking stoves and Liquefied Petroleum Gas (LPG).
Clean Cooking Association of Kenya (CCAK)
NextGen Mall (3.38 mi)
Nairobi, Kenya
P.O.Box 41607, 00100 Nairobi Kenya
Mobie: +254 0707 111669
www.ccak.or.ke