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The future of nearly 10 billion Kenyan shillings ($73 million) worth of Japanese Overseas Development Assistance (ODA) projects in Kenya is at stake due to double taxation problems, a statement issued by the Kenyan President’s office said.
The statement assured that Kenya will address the double taxation problem but didn’t disclose any timelines. The Kenyan Treasury website shows the status of Kenya-Japan double taxation agreement as ‘under negotiation.’
“We are pursuing the expeditious resolution of this matter within the due process of relevant institutions,” the statement quoted Kenyan President William Ruto as saying during a bilateral meeting with the Prime Minister of Japan Kishida Fumio in Nairobi on Wednesday.
In Kenya, Japan has invested in infrastructure and geothermal projects, and is funding High-Tech lab at KEMRI, the Mombasa Intelligent Transport system and the Ahero Irrigation Scheme, the statement noted.
Kenya has estimated 10,000 MW of untapped geothermal energy, enough to power the country’s current peak demand five times, spread out across two dozen sites in its Rift Valley region, according to a report published by the International Monetary Fund (IMF).
(1 US Dollar = 136.40 Kenyan Shillings)
(Writing by SA Kader; Editing by Anoop Menon)
