Kenya lifts VAT on solar imports

June 11, 2014
Facebook
Twitter
LinkedIn
Reddit
Email

Kenya has lifted VAT charges on all solar equipment imported into the East African country.

The move nullifies a 16% VAT rate brought in late last year on imported solar products.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The lifting of the tax has been welcomed by solar installers and campaigners in Kenya.

Linda Wamune, operations director of Solar Aid in Kenya, said: “Removing VAT on solar products reduces the cost to consumers and aids access to everyone buying solar products. The benefits to Kenyans and the national economy will be substantial. We will be able to reach more customers in off-grid areas throughout Kenya with these price decreases.”

However, there are concerns over the impact the move could have on Kenya’s domestic PV manufacturing sector.

“The new tax exemption, while being a very noble idea on the surface, will have negative effects on local manufacturers,” said Haijo Kuper, managing director of solar manufacturer Ubbink East Africa, based in Kenya.

“The vibrant solar energy market that Kenya has developed will be flooded with cheap imports. Local manufacturing has the added advantage of offering after sales and warranty due to close proximity,” Kuper added.

George Bowman, founding director of Azimuth Power, co-developer of the recently completed Changoi PV installation in northern Kenya, said: “When we started out last year there was no VAT on solar, then it was added and now…it appears to be off again. I think this is a good thing overall as it will make systems more attractive to commercial buyers, but I can understand Haijo’s position.”

Read Next

April 9, 2026
Dutch-based solar developer Novar has acquired a 100MW solar PV plant in Baden-Württemberg, a southern state in Germany.
April 9, 2026
Origis Energy has secured US$118 million in tax equity financing for the Chalan solar-plus-storage project in Kern County, California.
April 9, 2026
French utility EDF has received a development consent order (DCO) from the UK government to build an 800MW solar PV plant in England.
April 9, 2026
Italy is the most attractive European country for solar development, according to the chief of staff of German independent power producer (IPP), Encavis.
Premium
April 9, 2026
PV Talk: JP Kock of IPP Encavis discusses why the competitive landscape of Europe's solar market is in store for a shake-up.
April 9, 2026
French renewables company Voltalia has fully commissioned the 148MW Bolobedu solar farm in Limpopo province, South Africa.

Upcoming Events

Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland