Japan donates Sh212M to support Kenya’s Covid-19 vaccine distribution

Government of Japan has donated Sh212 million to Kenya’s cold chain capacity for Covid-19 vaccines roll-out as part of support to the region.

The donation comes a day after the National Assembly passed a motion tabled by the Committee on Delegated Legislation exempting Japanese companies and employees from income tax amid country’s struggling economy.

According to Ambassador of Japan to Kenya, Horie Ryoichi, the funding will support the government in its Covid-19 vaccination efforts, especially through the procurement of equipment for vaccine storage, distribution and continuous temperature monitoring, including storage for vaccines that require “ultra-cold” temperatures.

“Since the beginning of the Covid-19 pandemic in Kenya, Japan has been contributing to the fight against the virus by providing medical equipment and PCR test kits,” he said.

The fund is part of a grant of about Kshs1.2 billion to 11 countries in the East and Southern Africa region.

Additionally, the funds will also be used to support the installation of new equipment and provide training to the healthcare workers on how to operate the equipment.

Kenyans were outraged and expressed their displeasure against Members of Parliament (MPs) after National Assembly passed motion by the Committee on Delegated Legislation exempting Japanese companies and employees from income tax amid country’s struggling economy.

The Committee on Delegated Legislation, chaired by Tiaty MP William Kamket  recommended, in a report to the house, the exemption from income tax of Japanese companies, employees and consultants working on projects agreed upon between the government of Kenya and Japan.

“The policy and requirement of the government of Japan are to have Japanese companies, consultants and employees involved in the implementation of any project financed by the government of Japan, exempted from tax,” Kamket told the House.

In the report to the house, the exemption from income tax of Japanese companies, employees, and consultants working on projects agreed upon between the government of Kenya and Japan.

The notice for exemption was first issued by Treasury Cabinet Secretary Ukur Yatani in February this year, for Japanese nationals undertaking projects in Kenya.

Section 13(2) of the Kenyan Constitutions allow Yatani to exempt certain activities from taxation and the notice must be published in the gazette and must be submitted to the National Assembly.

Currently, Japan is undertaking at least 15 projects in Kenya worth over Ksh328 billion.

Among the projects being undertaken by Japanese contractors including Olkaria V Geothermal Power Development Project which cost Ksh66.9 billion and Ksh38.2 billion Mombasa Special Economic Zone Development Project.

Others include the first and second phases of the Mombasa Port Area Road Development Project (Ksh29 billion) and the first phase of the Mombasa Port Development Project (Ksh22 billion).

In the country, income tax is charged annually on income accrued in or was derived from the country by residents and non-residents.