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GFEI hosted a stakeholder workshop in Nairobi on the 12th May 2016 to discuss new proposals for a vehicle taxation scheme to promote the importation of cleaner, more fuel efficient vehicles in Kenya. The event shared the findings of a report developed by the Kenyan Energy Regulatory Commission in collaboration with the University of Nairobi, and supported by GFEI through UNEP with DFID funding.
The report reviewed vehicle fuel economy trends and identified policy proposals to improve vehicle fuel economy in Kenya. The report proposed two policy instruments: a ‘feebate’ tax system and a vehicle labelling scheme. A feebate tax structure proposes a fee or levy on inefficient vehicles and a rebate or refund on efficient vehicles while a vehicle labelling scheme provides information on vehicle fuel efficiency to consumers. The report illustrates what a Kenyan vehicle label could look like.
Mauritius and India shared their experiences of implementing similar policies. The neighbouring countries of Ethiopia and Uganda that are considering implementing cleaner vehicle policies also participated in the workshop.
Stakeholders welcomed the policy proposals that would promote import of cleaner vehicles but called for further discussion and sensitisation around the policies. The government gave its commitment to support cleaner vehicle importation if the policies proposed were practical and sustainable.
The proposals will now be finalized taking into account the workshop discussions and submitted to the relevant government agencies for consideration and possible adoption.
Fuel Economy Labelling and Feebate Proposal report
Presentations:
Fuel Economy and Feebate Study for Motor Vehicles in Kenya
Prof Nyangaya - Prof Gitau
Fuel Efficiency initiative in Uganda
Gerald Banaga-Baingi 12 May 2016
Implementation of the Feebate Tax System Case of Mauritius
Rechad Mamode Ally 12 May 2016
Indian Experience in implementing Fuel Economy
Satish Chandra Sharma 12 May 2016
