This archive report was first published on 11 November 2019.
On November 11, 2019, President Uhuru Kenyatta assented to the Finance Bill 2019, a move aimed at promoting environmental conservation in Kenya.
The bill provides a range of incentives for renewable energy and conservation-focused initiatives, including a reduction in excise duty on electric-powered motor vehicles from 20 percent to 10 percent.
This move is expected to promote the importation of electric cars, reducing Kenya's reliance on fossil fuels and mitigating the impact of climate change.
However, the bill also increases the excise duty on diesel or semi-diesel motor vehicles with a cylinder capacity exceeding 1,500cc from 20 percent to 35 percent.
Other key provisions of the bill include a lower corporation tax of 15 percent for investors operating plastic recycling factories for the first five years, as well as a VAT exemption on services offered to plastic recycling plants and the supply of machinery and equipment used in their construction.
Additionally, the bill provides for the exemption of VAT on specialized solar equipment subject to approval by the Cabinet Secretary for Energy, and income tax exemption for interest income accruing from listed bonds, notes or other similar securities issued for infrastructure, projects and assets defined under the green bonds standards and guidelines.
