- AfDB says the country needs to prioritise adaptation funding more, compared to mitigation funding.
- Further says the country should broaden its capacities to attract more adaptation funding from multinationals.
The cost of solar equipment is still high despite the incentives put in place by the government to encourage uptake of green energy in off-grid areas.
This is with the aim of achieving the universal electrification goal by 2026.
This according to John Kioli, chairman of the Sustainable Energy Access Forum Kenya (SEAF-K), who says the situation hinders the state's strive towards universal electrification while leveraging on green energy to cut down the levels of carbon missions from fossil energy.
He was speaking during a policy briefing forum seeking to explore domestic policy recommendations geared towards climate justice for all.
Organised by Power Up, a coalition campaign that amplifies African voices on climate adaptation funding, the forum also sought to address the impediments to rural electrification, and deliberate on diversified funding mandate of the international community.
In 2021, the government reinstated the VAT exemptions which were proposed in the Finance Bill, 2021 on specialised equipment for solar and wind energy development and production.
It was seen as an appropriate move that needed to turn on the lights for the underserved communities and increase the uptake of solar products.
However, Kioli says the incentive might not have done enough as intended, and there is need for the government to intervene and ensure that the high costs which are being offered to consumers are revised to ensure affordability.
“Some of these equipment in most rural homes are not effective, as they develop technical problems in the line of service,” Kioli said.
According to Paul Mbuthi, the senior deputy director of renewable energy at Ministry of Energy, the country’s access to electricity stands at 77 per cent.
“The remaining space is still a challenge, as majority of these people are located in the most remote areas. Heightened costs of the appliances will only make them shun from acquiring them," Mbuthi said.
Addressing the issue of green funding from multinationals, Olufunso Somorin, the regional principal officer at AfDB said the country needs to prioritise adaptation funding more, compared to mitigation funding.
“In Kenya, only 20 per cent goes to adaptation projects while the rest goes to mitigation,” Somorin said.
He added that Kenya, as well as other developing countries, should further build their capacities to attract adaptation funding from multinationals.
“Currently, the countries receive concessional funds and grants, making about 99 per cent of the funding which are often directed to mitigation.”
Kenya's Climate Change Envoy Ali Mohamed, reiterated the government's commitment to enhance uptake of green energy.
He noted the provision on VAT exemption for liquefied petroleum (LPG) in the disputed Finance Act, which deletes the provision that initially subjected LPG including propane to an eight per cent rate.
The Act provides for a zero-rate VAT instead.
The zero-rating of LPG is intended to have a positive impact of reducing its cost and therefore making it more affordable for Kenyans, and increase its uptake.