Kenya is mandatory to equip solar container battery manufacturers

Solar Battery & Energy Storage Insights - South Africa

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FAQS 4

Does Kenya have a VAT exemption for solar equipment & accessories?

In September 2013 the newly introduced Value Added Tax Act 2013 (“The Kenyan VAT Act 2013”) did not contain any provisions providing for VAT exemption or zero-rating of solar equipment and accessories. This meant that with efect from 1st September 2013 imported solar equipment and accessories were subject to VAT at 16%.

Can a solar power system be exempted from tax in Kenya?

On the other hand, Kenya Revenue Authority (“KRA”) adopted the interpretation that equipment that could ‘technically’ only be powered by solar PV could qualify for exemption, thereby excluding any equipment or accessories that could potentially be powered by the grid (e.g. solar fridges, solar lanterns with a USB charging port etc.).

What is a standardised solar importation guideline?

The purpose of these guidelines is to provide clarity to the solar PV industry (solar PV companies and clearing and forwarding agents (C&F)) on the importation process, requirement and qualification for exemption for all relevant solar products in Kenya through the production of a standardised importation guideline.

What challenges did Kra face in importing solar power equipment?

KEREA representing Solar Home System(SHS) companies as the industry association, informed KRA about the challenges its members were having due to the lack of clarity and inconsistencies within the importation process. Specifically the members were impacted by the inconsistent application of tax exemptions on certain solar powered equipment.

Kenya is mandatory to equip solar container battery manufacturers

Solar Battery & Energy Storage Insights - South Africa