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{
    "id": 1022028,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1022028/?format=api",
    "text_counter": 301,
    "type": "speech",
    "speaker_name": "Sen. Halake",
    "speaker_title": "",
    "speaker": {
        "id": 13184,
        "legal_name": "Abshiro Soka Halake",
        "slug": "abshiro-soka-halake"
    },
    "content": "The decentralization of the energy sector, according to the Power for All Organization 2019 study, shows that the sector created over 10,000 direct jobs and 65,000 jobs in the communities they serve. The introduction of taxes in the sector will not only constrict its growth, but also result in job losses as companies adjust to the increased cost of doing business as a result of the taxes. This will negatively affect not just employment, but also access to the poorest of households. Kenya has noble and achievable electrification goals and the next two years will be the most critical for the country to achieve. The main priority for the Government should be to focus on securing energy for all Kenyans everywhere. Imposing VAT on solar and renewable energy generation is not aligned to these electrification goals. It is punitive to the poor households in this country. The responsibility, therefore, lies in the House to ensure that Kenyans, the economy and development objectives of this country are protected through ensuring that imposition of VAT on renewable energy products is reversed and more access is made. We have no business investing in fossil fuels at this time when everybody is shifting to renewable energy. We are going back and starting to put tariff or taxation barriers on clean energy. I urge and recommend that the initial VAT exemptions on equipment used for development and generation of solar and wind energy be retained. This has happened midway--- I think we had the exemptions up to 2022. However, before even the expiry of the exemption period, the VAT has now been imposed. That creates an environment in which nobody even knows what to do, because the taxation just came out of the blues. We know there is revenue collapse, but we need to make sure that people know what to expect from our taxation policies. There is not justifiable reason to impose the new taxes on renewable energy equipment and products, as it will have adverse effects on the society and economy, both in the short and long term. Madam Deputy Speaker, I know this is a Statement under Standing Order No. 47(1), but if you would be persuaded, I would appreciate if this is directed to the Committee on Finance and Budget, so that they can deal with the National Treasury and find out why at this point in time, we are going back on our renewable energies, which are being used by our poorest households. I thank you."
}