Kenya Proposes Feebate and Vehicle Labelling Program

By UNEP

A vehicle inventory study for Kenya released in 2015 showed that on average, the country was importing less fuel efficient vehicles. The average CO2 emission of vehicles imported in 2012 was 178.2 g/km compared to 185.4 g/km in 2012. This is equivalent to an average fuel consumption of 7.4 Litres per 100 Kilometres in 2010 and 7.7 l/100Kms in 2012.

Building on these findings, UNEP through DFID funding, supported the Energy Regulatory Commission (ERC) to prepare policy proposals to support importation of cleaner, more fuel efficient vehicles. The ERC collaborated with the University of Nairobi to develop two policy proposals – a feebate tax system and 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 labeling scheme provides information on vehicle fuel efficiency to consumers. These two policy proposals were presented to stakeholders at the national workshop in May 2016, in Nairobi. Stakeholders welcomed the policy proposals that would promote import of cleaner vehicles but called for enhanced sensitization on the policies. The government gave its commitment to support cleaner vehicle importation if the policies proposed were practical and sustainable.

At the workshop, Mauritius and India gave their experience in implementing similar policies. Neighboring countries of Ethiopia and Uganda that are considering implementing cleaner vehicle policies also participated in the workshop. These proposals will now be finalized taking into account the workshop discussions and submitted to the relevant government agencies to consideration and possible adoption.

Source: http://www.unep.org/Transport/ GFEI/feebate_kenya2016.asp

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