Clean energy lobby seeks bailout on reduced sales

An umbrella body that brings together operators in the clean cooking sector is seeking a Sh0.5 billion government bailout to cushion it from reduced sales. FILE PHOTO | NMG

What you need to know:

  • An umbrella body that brings together operators in the clean cooking sector is seeking a Sh0.5 billion government bailout to cushion it from reduced sales in the wake of the coronavirus pandemic.
  • The association said its members have been recording a drop in revenue after the State restricted movement of people across the country and closed schools indefinitely, a move which has seen their member’s sales drop.
  • Clean Cooking Association of Kenya (CCAK) chief executive David Njugi said they have sent their request for the bailout through the Ministry of Energy.

An umbrella body that brings together operators in the clean cooking sector is seeking a Sh0.5 billion government bailout to cushion it from reduced sales in the wake of the coronavirus pandemic.

The association said its members have been recording a drop in revenue after the State restricted movement of people across the country and closed schools indefinitely, a move which has seen their member’s sales drop.

Clean Cooking Association of Kenya (CCAK) chief executive David Njugi said they have sent their request for the bailout through the Ministry of Energy.

“The amount will enable us to operate at the levels we were before Covid-19 onset,” Mr Njugi said.

The lobby represents the interests of the private sector as well as representatives from development partners, NGOs in advancing the uptake of clean energy in Kenya.

They are seeking the funds to settle staff salaries, pay rent as well as suppliers.

Apart from the Sh500 million relief fund, the lobby group has also warned that the introduction of tax on solar, wind and hydro, as well as on clean cooking stoves would result in reduced sales, rendering hundreds of workers in the sector jobless and miss its targets on clean energy access.

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