- Kenya approves tax cuts for off-grid IPPs
- The Finance Act now recognises tax incentives to large IPPs
The Kenyan government has granted off-grid Independent Power Producers (IPPs) a 50% tax cut in a move aimed at boosting the growth of small-scale off-grid plants with the potential to lower bills for consumers.
The Finance Act 2021 from 1st January 2022 recognises mini-grid power systems as “manufacturers”, giving these IPPs the same tax incentives available to large-scale generators to boost investments in the sector.
”It will encourage the growth of small renewable energy power plants, which is an important step towards increasing competition and reducing the cost of electricity,” KPMG stated in its analysis of the new development.