This archive report was first published on 19 June 2020.
Kenya's progress in promoting clean energy is at risk of being undone by the Treasury's plan to reintroduce value-added tax (VAT) on cooking gas, a move that could reverse the gains made in weaning households off dirty fuel.
Since the removal of VAT on cooking gas in 2016, the country has seen a notable increase in the use of liquefied petroleum gas (LPG), with average prices dropping from Sh2,300 to slightly above Sh2,000 and demand increasing by more than four times since 2017.
However, the Treasury's bid to reintroduce the 14% VAT on cooking gas, which would see the 13-kilogramme cylinder rise by about Sh300, could roll back these gains at a time when Kenya has made a global commitment to deepen the use of clean energy.
According to government data, more than 21,500 Kenyans die each year from cooking with traditional fuels like charcoal and firewood, with the health risks greatest in rural areas where 90% of households use wood stoves compared to 70% nationwide.
The widespread use of dirty fuels also contributes to climate change and deforestation, with Kenya's forest cover dipping below the acceptable level of 10% of the country's mass.
As the National Assembly's Finance and Planning Committee has noted, the Treasury's plan to remove tax exemptions, including the 14% VAT relief on cooking gas, is misguided and could put the environment and livelihoods at risk.
