MPs order audit of wind farm over tax penalty row

Members of Parliament have directed the National Treasury to audit Lake Turkana Wind Power over a contested tax bill tied to the Sh19 billion penalty...

✨ Key Highlights

Members of Parliament have ordered a comprehensive audit by the National Treasury into Lake Turkana Wind Power (LTWP) concerning a disputed Sh19 billion tax penalty. The penalty was paid to LTWP by the government due to delays in completing a crucial transmission line.

The audit will focus on Value Added Tax (VAT) liabilities related to the Sh19 billion penalty paid to LTWP.
Key organizations involved include the National Treasury, LTWP, the Kenya Revenue Authority (KRA), and the Energy Ministry.
The tax dispute stems from whether the €127.2 million (Sh19.1 billion) payment, a compensation for a breach of contract, is taxable or exempt.