The National Assembly has approved tax exemptions on a Sh3 billion Japanese-funded research programme at the Kenya Medical Research Institute (Kemri).
The MPs approved the recommendations of the National Assembly Committee on Delegated Legislation, paving the way for implementation of the project aimed at strengthening Kemri’s research. The committee said taxing the Japanese grant would undermine efforts to strengthen medical research in Kenya.
The exemption, contained in Legal Notice No. 191 of 2025, is intended to facilitate the implementation of a bilateral agreement between Kenya and Japan under which the Japan International Cooperation Agency (Jica) is providing Sh3 billion to support research capacity at Kemri.
The committee chairperson Samwel Chepkonga said the amendment is intended to add the Kemri project to the list of 16 other tax-exempt projects.
“We have 16 projects that have been exempted from the Income Tax Act. This Legal Notice seeks to exempt another project, named the Project for Strengthening Research Capacity for Kenya Medical Research Institute (Kemri), 2024,” Mr Chepkonga said.
“Japan had attached a tax exemption requirement to the funding under the bilateral agreement with Kenya.”
He said the Japanese government, through Jica, has extended Sh3 billion for research to Kemri, with a requirement under the bilateral agreement signed between Kenya and Japan that the money granted and paid out of the project would be exempted from income tax.
Health committee chairperson and Seme MP James Nyikal said Kemri had evolved beyond its traditional role as a research institution.
“As the mover of this motion said, Kemri has moved a step further. What we need to know is that Kemri is now not just a research institution; it is actually a degree-awarding institution, dealing with postdoctoral research,” Dr Nyikal said.
“Postdoctoral research is critical because it generates knowledge that could eventually be translated into products, including medicines."
Postdoctoral research is extremely important because it gives rise to findings that eventually go into production of even drugs, like in the case of Kemri.
The Kilgoris MP Julius Sunkuli said Kemri is a prime research organisation which has benefited from development support, thereby advancing medical research.
“Kenya should make it easier for research institutions to attract international grants instead of imposing tax obligations on money provided by development partners.”
“We are asking that Kemri be included among those organisations that are exempt from the provisions of the Income Tax Act and regulations.”
