Increasingly, governments around the world are introducing policies to curb further climate change. Kenya has not been an exception with various proposals being made in Parliament in the past few months.
For example, Kenya’s Finance Act Number 22 of 2022 (Finance Act) introduced a tax incentive to encourage the use of market approaches for low-carbon development. The Finance Act defines that a corporate tax incentive is given to companies operating a carbon market exchange or emission trading system.
In the same breath, there are plans in the works to bolster electric mobility by lowering taxes and customs duties on the importation, local assembly, or marketing of electric vehicles in the country. This proposal will be domiciled in the Finance Act 2024 after validation by local authorities and parliamentarians. The Energy and Petroleum Regulatory Authority (EPRA) estimates that the incentive will encourage the introduction of at least 350 electric cars and bikes into the country.
As a more recent example, the government disclosed plans to introduce carbon taxation that targets motor vehicle users and companies in the manufacturing sector. Companies will be taxed for every tonne of carbon emitted from their plants while cars driven in zones marked as heavy traffic areas will pay a congestion charge. This move aims to reduce congestion in cities and encourage companies to reduce their carbon footprints.
These examples should awaken any sleeping giants and get them started on the journey to building a sustainable business. Any company that has plans to exist and thrive into the future must take action today.
The good news is, it’s never too late to start (or so I believe!). Do not dwell on the feeling of being left behind or start a pity party, instead spend time learning about sustainability within your industry and how you can mainstream this in your company – one step at a time. Here is where the sustainability team at Oxygene comes in. Our GRI-trained-and-certified personnel will walk the journey with you.
As we always say, to be successful and stay ahead of the curve – you must take the initiative and own sustainability. This proactive approach helps you remain in control, secure the benefits of sustainability, mitigate against regulation shocks, manage reputation risks and
To thrive, companies need to go beyond legal compliance into deliberate ownership of sustainability.