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{
    "id": 1022027,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1022027/?format=api",
    "text_counter": 300,
    "type": "speech",
    "speaker_name": "Sen. Halake",
    "speaker_title": "",
    "speaker": {
        "id": 13184,
        "legal_name": "Abshiro Soka Halake",
        "slug": "abshiro-soka-halake"
    },
    "content": "Thank you, Madam Deputy Speaker. Pursuant to Senate Standing Order No. 47 (1) I rise to make a Statement on an issue of general topical concern, namely, imposition of VAT on clean and renewable energy products in our country. On 23rd June, 2020, the Finance Bill 2020, which sought to amend various laws relating to succession, proposed an amendment to the Value Added Tax (VAT) Act of 2013 and introduced VAT on equipment used for the development and generation of solar, wind and hydro energies. This Bill has subsequently been assented into law. On receiving the Presidential assent, the Act imposed a 14 percent VAT to supply or importation of specialized equipment for the development and generation of solar, wind energy, including deep cycle batteries, hydro energy as well as clean cooking stoves. Madam Deputy Speaker, taxation of clean energy or renewable energy will have far-reaching consequences as it will not only have increased the tax burden for the poor and marginalized, but also act as an impediment to national development. This undermines Kenya’s ability to reach the national objectives of universal electrification by 2022, which will be impossible to realize with the introduction of the taxes and more so, the elements of the Big Four Agenda, which is affordable housing, food security, manufacturing and universal health care. These will be difficult to realize without energy in the hard-to-reach places. It should be noted that clean energy, wind energy, solar energy and clean cooking stoves are mostly used in areas such as where we come from in northern Kenya, for instance, Isiolo and Marsabit, where there is plenty of wind, solar and other clean energy. According to the 2019 census, solar lighting in Kenya averages 19.3 per cent with rural areas recording above average rates of connectivity of 29 per cent higher than the rural national grid connections that stood at 26 per cent. Clean energy and renewable energy is rural-facing, so to speak. The imposition of VAT on solar equipment and batteries will make them more expensive. A price increase of 14 per cent would lead to 17.5 per cent fall in their demand. A reduction in demand will wipe out thousands of jobs in the solar and renewable energy value chains. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}