Premium
Tax exemptions for KenGen out in new law changes
KenGen's geothermal energy plant in Olkaria. The power producer is braced for increased taxation running into hundreds of millions of shillings.
Photo credit: File | Nation Media Group
What you need to know:
- KenGen had Sh88.9 billion worth of pending power plants in the review period and will now pay all the relevant taxes on the projects.
- The RDL is currently levied at a rate of between 1.5 per cent and two per cent of the value of imported goods depending on whether they are raw materials or finished products.
Power producer KenGen is braced for increased taxation running into hundreds of millions of shillings after the Finance Act 2020 took away tax exemptions on electricity plants and introduced new ones.
The move will end the Nairobi Securities Exchange-listed firm’s previous practice of paying the taxes and later claiming refund, with the amounts boosting its “other income” when they are received from Kenya Revenue Authority.
