The Clean cooking Association of Kenya (CCAK) has urged the government to consider extending the VAT waiver to Improved Cook Stoves(ICS) and Liquid Petroleum Gas(LPG).
Clean Cooking stoves and LPG were not considered for exception in this financial year 2021/2022.
“Clean Cooking stoves and LPG are critical clean energy solutions and we urge
government to support expanded accessibility to more Kenyans,” CCAK said in a statement.
The association commended the government for the reinstatement of VAT exemptions on a range of clean cooking fuels, including; biogas and biogas equipment, sustainable fuel briquettes, and ethanol, which are critical to achieving the country’s climate and development goals.
David Njugi, CEO of CCAK said the VAT exemptions in the 2021 Finance Act will catalyze investments in the clean cooking sector and ensure the fuels are affordable to many households.
“This will contribute to the acceleration of Kenya’s SDG 7, energy access objectives, through the deployment of clean cooking solutions,” he said.
According to the association, the decision was achieved after intense lobbying
by Clean Cooking Alliance, CCAK and other stakeholders working together to advocate for this important milestone.
“This decision aligns with the Government of Kenya’s aim to achieve universal access to clean cooking solutions by 2028. This objective was publicly announced at the Clean Cooking Forum in November 2019 and is motivated by the many benefits of cleaner cooking solutions, including improved livelihoods, health, environmental quality, and climate change mitigation,” said the association.
With only an estimated 18 per cent of households in the country currently using clean fuels, the country must rapidly expand access to cleaner cooking solutions to achieve this ambitious goal.
The reinstatement of the VAT exemption will help make clean cooking products, especially the fuels more affordable for the millions of Kenyan households who still lack access to clean fuels to cook their daily meals.
The VAT exemption is expected to help companies boost their sales and
production of these products, creating sustainable jobs and social economic growth.
