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Economy

Kenya Endorses New Tax Affecting Countries Worldwide

Judith MwauraBy Judith MwauraMarch 26, 2025No Comments3 Mins Read
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Kenya Backs Global Carbon Tax on Shipping to Combat Climate Crisis

Kenya has thrown its support behind a new global carbon tax targeting shipping activities as part of the ongoing fight against climate change.

The country believes the tax will help reduce harmful emissions that contribute to the global climate crisis.

Speaking on Tuesday, March 25, Kenya’s Special Envoy for Climate Change, Ambassador Ali Mohammed, confirmed the nation’s backing of the initiative.

He emphasized that Kenya is among the countries that suffer the most from climate change despite contributing very little to the problem.

Mohammed pointed out that the primary culprits behind climate change are highly industrialized nations, particularly those in the West, which have historically produced massive emissions.

“Under the principle of common but differentiated responsibility, those who have played the biggest role in driving climate change must also take the lead in financing solutions,” he stated.

Reports indicate that the shipping industry is responsible for around 3% of global greenhouse gas emissions, and experts warn that if left unchecked, these emissions could rise significantly in the coming years.

The proposed carbon tax on shipping is seen as a critical and transformative solution that could benefit Kenya and other vulnerable nations.

If implemented, it would become the first-ever global tax within the pollution sector. According to estimates by the World Bank, the levy could generate approximately Ksh7.7 trillion per year.

The funds collected from this tax would be directed toward helping nations that are highly vulnerable to climate change, particularly Kenya and other developing countries that bear the brunt of extreme weather conditions.

“Kenya fully supports this initiative without any reservations. It aligns perfectly with our national goals of reducing carbon emissions while promoting sustainable development,” Mohammed affirmed.

To avoid additional costs from the tax, countries that depend heavily on maritime trade are being encouraged to invest in environmentally friendly shipping technologies.

This includes switching to zero-emission vessels, adopting renewable fuels, and upgrading port infrastructure to make it more climate-resilient.

However, while the tax could bring major benefits to developing nations, there are also concerns about possible negative effects.

One key issue is the potential increase in importation costs, which could make goods more expensive, especially for African nations that rely heavily on maritime trade.

Ambassador Mohammed urged global stakeholders to ensure that the tax does not widen economic inequalities or create further barriers in global trade.

He stressed the need for a balanced approach that supports both environmental sustainability and economic stability for all nations.

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Judith Mwaura is a dedicated journalist specializing in current affairs and breaking news. She is passionate about delivering accurate, timely, and well-researched stories on politics, business, and social issues. Her commitment to journalism ensures readers stay informed with engaging and impactful news.

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