Policy Alert: Kenya introduces VAT on off-grid solar products

On Tuesday 23 June, the Kenyan National Assembly passed the 2020 Finance Bill that will result in the introduction of a 14% VAT on off-grid solar products.

The adopted Bill removed the current VAT exemption for “specialized equipment for the development and generation of solar and wind energy, including deep cycle batteries which use or store solar power upon the recommendation of the Cabinet Secretary responsible for matters relating to energy.” This in effect meant that, likely effective 1 July  2020, the status of solar equipment and accessories which were exempt would now be subject to VAT at the rate of 14%.

Read GOGLA’s position on the introduction of VAT

 


 

 

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