The Government seems to be talking the talk when it comes to making Kenya a climate change leader, but when it comes to walking the walk, they seem to be stumbling in the dark. On paper, they are all about transitioning to a low-carbon, climate-resilient development pathway, but in reality, it is a different story.

Just last week, the Ministry of Environment, Climate Change, and Forestry proudly submitted Kenya’s Second Nationally Determined Contribution (NDC 2031-2035) to the UNFCCC, outlining plans to reduce greenhouse gas emissions by 35% between 2031 and 2035. However, the plot thickens as the proposals in the 2025 Finance Bill, unveiled the same day, seem to throw a twist in the works of this ambitious commitment. It is like Kenya is shooting itself in the foot while trying to run a marathon towards a greener future!

One glaring example of the lack of commitment to fighting climate change is the suggestion to slap a 16% VAT on solar, wind, and geothermal inputs. Currently, these inputs are VAT exempt, but if this proposal goes through, they will become expensive, putting a damper on investments in green energy. These green energy sources play a crucial role in reducing greenhouse gas emissions, combating global warming, and safeguarding the environment.

The 2025 Finance Bill is further shaking things up by suggesting a reclassification of VAT for electric bicycles, electric buses, solar and lithium-ion batteries, and bioethanol vapor (BEV) stoves. These items, previously zero-rated, are now on the fast track to becoming exempt, with standard VAT looming on the horizon. This unexpected twist seems to contradict Kenya’s commitment to reducing greenhouse gas emissions.