Mr President, don’t let Bill blot our Green credentials
President William Ruto delivers his closing speech during the closure of the Africa Climate Summit 2023 at KICC in Nairobi on September 6, 2023.
What you need to know:
- President Ruto has positioned himself as a prominent advocate for climate action on the global stage.
- Mr President, by imposing tax on formerly zero-rated green technology, are you keeping to the pledge?
In Greek lore, the Trojan horse was a cunning stratagem used by the Greeks to infiltrate and conquer the city of Troy.
The colossal wooden horse, conceived by Odysseus, was presented as a gift to the Trojans who, unaware of the Greek soldiers hiding inside, brought it within their fortified walls.
Under the cover of night, the concealed soldiers emerged, opened the gates for the Greek army and thus orchestrated the fall of Troy.
This ancient tale of betrayal and subterfuge finds a contemporary parallel in the current debate on the Finance Bill 2024.
President William Ruto has positioned himself as a prominent advocate for climate action on the global stage. In fact recently he was named among the 100 most influential people in the world by TIME magazine.
Last September, he hosted a climate summit in Nairobi, which culminated in a collective pledge by African nations to enhance renewable energy.
International climate advocacy
Mr President, by imposing tax on formerly zero-rated green technology, are you keeping to the pledge?
President Ruto, you volubly supported the $23 billion in commitments to support the continent’s climate objectives. You made an articulate and vocal appeal for debt relief to enable African countries to invest in climate solutions.
If per chance we get this debt relief, is it wise to tax the same technology? It is clear that domestic policies threaten to undermine your international climate advocacy. Treasury mandarins, through their newfound tax appetite, clearly did not consider your international credentials.
The proposal to repeal the zero-rating of e-mobility products, will result in 16 per cent VAT on electric bicycles, solar and lithium-ion batteries and electric buses.
This will inflate the costs of these green technologies, thereby discouraging their adoption and stalling progress towards a more sustainable future.
Financial burden on e-mobility
By introducing measures that increase the financial burden on e-mobility and renewable energy products, your government is inadvertently inviting the failure of the green campaign you have so fervently promoted.
In as much as the Finance Act 2024 is unpopular on many fronts, it should not erode your international credential. I believe the Bill should not be a balancing act between your international climate credentials and aspirations and the socio-economic realities.
As you navigate these complex dynamics, Mr President, you must ensure that your policies do not become a Trojan horse that derails Kenya’s, and indeed Africa’s, climate ambitions.
For you to truly lead on the global stage, you must align your domestic actions with your international commitments by fostering an environment where green technologies can thrive.
One of the key business cases for lithium batteries is that they are more robust than deep cycle batteries, they are low on maintenance and of late come integrated with inverters. Higher taxation will definitely slow down the current solar PV uptake.
Ms Hassan is a Business Development Manager at SolarNow Services (EA) Ltd. [email protected]
