Kenya: How does VAT on petroleum affect your electricity bill?

Depending on the amount of electricity purchased from diesel and gas generators and on the prevailing price of the fuel, Kenya Power works out the additional cost to be posted in consumers’ bills. In August 2018, for example, this was Sh2.50 per kilowatt hour (kWh).

However, a closer inspection of the bill reveals that the fuel cost adjustment is included when the VAT is calculated in the bill. The question then is: since Kenya Power is already collecting VAT on the fuel cost, should consumers get additional tax now that the government has started charging VAT on fuel?

Full article: Daily Nation




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