- Kenya will reinstate tax exemptions on clean energy equipment.
- Stakeholders believe that the decision will accelerate clean energy deployment and lower costs for solar energy products.
Kenya will reinstate value-added tax (VAT) exemptions on solar and wind power equipment. Ukur Yatani, cabinet secretary at the National Treasury and Planning, announced the return of tax waiver on renewable energy technologies during the presentation of the 2021/22 budget statement.
Tax exemptions on solar and wind energy equipment and the component will help Kenya in its bid to transition to a climate-resilient, low-carbon economic growth. With only 50 percent of Kenyan households currently connected to the electricity grid, the government sees off-grid solar as a viable means of electrifying millions.
Industry stakeholders have already hailed this decision. Victoria Sabula, CEO of Nairobi-based Africa Enterprise Challenge Fund (AECF), noted that the decision would accelerate the country’s transition to a green economy and reduce solar costs for consumers.