A parliamentary committee has granted massive tax exemptions and immunity to a Dutch firm associated with the Chancellor of the University of Nairobi, Prof Patrick Verkooijen.
The privileges to the Global Centre on Adaptation (GCA) will extend to immunity to its staff from prosecutions while in the country, as well as diplomatic status for their spouses, dependents and relatives.
The National Assembly committee on Environment, Forestry and Mining granted GCA, an international organisation established with the aim of accelerating adaptation action and supporting climate change solutions, several privileges to build its headquarters in Nairobi.
President William Ruto in January last year, appointed Prof Verkooijen, the President and CEO of the GCA, as the Chancellor of the University of Nairobi. He took over from Vijoo Rattansi, whose term had ended.
University of Nairobi Chancellor Professor Patrick Verkooijen during an interview in Nairobi on February 10, 2025.
Photo credit: Lucy Wanjiru | Nation Media Group
Prof Verkooijen, a Dutch national, became the institution's first chancellor from outside Africa.
In a report tabled in Parliament, the firm with headquarters in the Netherlands has been granted immunity from legal suit and legal process, exemption from rates and taxes on importation of goods, and exemption from taxes on other goods or services imported or purchased locally by the organisation for its official use.
Further, the firm has been exempted from prohibition and restrictions on importation or exportation in the case of goods directly imported or exported.
The staff of the firm that will work in Kenya will also enjoy privileges and immunities from suit and legal process on the things done while in the course of performing their official duties, exemption of taxes on their emoluments, national service obligations, immunity from immigration restrictions and alien registration.
The staff, spouses, dependants and relatives of the firm will also enjoy the same facilities as those accorded to diplomatic missions. In addition, they will also enjoy exemption from tax or duty on importation of furniture, personal property and household effects.
“The committee recommends that the House approves the privileges and immunities (Global Centre for Adaptation) Order, 2025,” reads the report.
“The committee is satisfied that the order complies with the constitution and relevant enabling legislation. Further, the committee confirms that the order was submitted to the National Assembly within the statutory timelines, was accompanied by explanatory memorandum and was subjected to adequate public participation,” further reads the report.
According to the report, the organisation has been working in collaboration with the government of Kenya since 2021
Through the new cooperation, GCA is set to establish its regional office in Nairobi and inject EUR3 million (over Sh452m) into programs for food security, infrastructure and nature-based solutions in Kenya.
The Nairobi office will oversee the Africa Adaptation acceleration program with key pillars such as food security, infrastructure and nature-based solutions, youth entrepreneurship and adaptation jobs and agenda setting and advocacy.
Foreign exchange earnings
According to submissions made by the Ministry of Foreign Affairs to the committee, the main objective of the firm is to accelerate adaptation action and support climate adaptation solutions.
It also promotes global cooperation and collaboration on adaptation, bringing together government, international organisations, the private sector, civil society and other stakeholders to work towards common climate adaptation goals.
In her submission to the committee, Environment Cabinet Secretary Deborah Barasa told the lawmakers that the move to grant the firm immunity will position Kenya not only as a leader in environmental governance but also as a continental hub for finance and resilience-building efforts.
“The ministry welcomes and supports the hosting of GCA headquarters in Kenya,” Dr Barasa said.
According to the report, the government will not incur any immediate financial implications by hosting the GCA.
However, in the long run, the report says the government will incur a loss of revenue through tax exemptions, which it says will be recouped through the investments that the company will carry out in the country.
According to the report, among the benefits that will accrue to Kenya are the creation of employment, spur development and humanitarian projects which will in turn increase foreign exchange earnings for the country.
The firm will also support the government's strategies in reducing the country’s vulnerabilities to climate change and harness the economic growth opportunities that result from effective climate adaptation.
According to the report, the move will also elevate Nairobi as a hub for multi-cultural diplomacy and increase foreign currency cash flows, which is necessary in boosting the local economy.
The report states that Nairobi has been chosen for the regional office because of its relative peace and geographical location. In addition, it’s a business and economic hub, hence providing an excellent regional base to support the programs.
The GCA, according to the report, is working with the African Development Bank under the African Adaptation Acceleration program and the Kenya National Highways Authority to mainstream climate change.
The firm is also working with the World Bank Group to strengthen the public sector capacity in counties and municipal boards to implement urban services and planning under the Kenya Urban Support Program.
