Energy lobby roots for tax exemption

The Kenya Renewable Energy Association (Kerea) has sustained its push for the withdrawal of tax on solar energy products.

The association on Wednesday met with the National Assembly’s Energy, Trade and Environmental Committee to present its case on the impact of taxation on the renewable energy sector.

Kerea had previously lobbied for value added tax exemptions in 2017 but was unsuccessful.

“It was a truly exciting time for the country as a whole when tax exemption was implemented on solar energy products in 2013,” said Kerea Chairman Kamal Gupta.

“As an organisation, we were excited because we knew that the use of renewable energy would achieve deeper penetration within the country due to lower costs of solar energy products,” he said.

“However, with the withdrawal of the tax exemption, the use of renewable energy continues to be an unachievable dream for many Kenyans.”

Mr Gupta asked for clarification on the importation laws for solar products.

“There is a lot of confusion on some of the aspects, leaving it open to individual interpretation, which should not be the case. We believe it will benefit the sector immensely if there was uniformity in the implementation of the law,” he said.

Kerea said the Government needs to encourage the uptake of renewable energy.

It was the second time this year that the association was meeting the committee to lobby for tax exemption.