Mini-grids get tax cut to take on Kenya Power

Power producers who sell electricity without going through the national grid have been granted a 50 percent tax allowance, boosting the growth of small-scale plants with the potential to lower bills for customers.

The Finance Act 2021 has from January 1 recognised mini-grid power systems, which distribute electricity as “manufacturers”, giving them the same tax incentives available to large-scale generators who sell to near-monopoly Kenya Power.

The coming to force of this clause of the Finance law will see investors in power mini-grids deduct half of the expenses of the buildings and machinery used to generate electricity from income when calculating corporation taxes.

Read more: Business Daily