A new policy came into effect on 1 July, changing the status of off-grid solar equipment and accessories in Kenya, which were previously exempt from a 14% VAT. The adopted Bill removed the current VAT exemption for “specialised equipment for the development and generation of solar and wind energy, including deep cycle batteries, which use or store solar power”.
Previously, a similar proposal to reintroduce VAT was already proposed by the National Treasury in April.
This effort was ultimately rejected by the National Assembly through efforts of GOGLA, a global association for the off-grid solar energy industry, and other stakeholders on grounds that it would conflict with the national priorities for universal energy access.
However, the VAT has now been introduced effective from 1 July 2020.
Read more: ESI Africa