MPs order audit of wind farm over tax penalty row

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Parliament during a past session. [File, Standard]

Members of Parliament have directed the National Treasury to audit Lake Turkana Wind Power (LTWP) over a contested tax bill tied to the Sh19 billion penalty. The firm was paid by the government after Kenya failed to deliver a transmission line to evacuate power from its plant in Marsabit on time.

Taxing the money earned through the penalty has been contested, with the Kenya Revenue Authority (KRA) arguing that it constitutes a taxable service.

The company, however, noted it was a penalty levied on the government for a breach of contract, which made it tax-exempt.