Uncertainty hits Kenya’s household clean energy sector amid taxation

Kenya first imposed duty on products like briquettes cookstoves and bio-fuel stoves in 2018 as it sought to shore up its revenue amid struggling budget deficits.

The East African nation is further set to impose a 16 percent value-added tax on liquefied petroleum gas from July 1, according to the Kenya Revenue Authority. The tax would see the cost of the cooking gas rise by at least 3.3 dollars from an average of the current 20 dollars for a 13kg cylinder of liquefied petroleum gas.

Statistics show that Kenyans used 312,100 tons of cooking gas in 2019, up from 222,300 tons in 2018.

“The higher price may see us shut down our businesses because consumers would switch to other fuels that they consider cheaper,” said James Kyalo, a cooking gas seller in Kitengela, south of Nairobi.

Read more: Xinhuanet