Today, Kenya is a world leader in deploying solar energy, which has helped transform the nation’s economy and Kenyan citizens’ lives for the better. This commendable achievement has played a pivotal role in elevating Kenya's electrification rate, with over 30% attributed to off-grid solar lanterns and solar home systems (KEREA, 2024). Such measures jeopardise Kenya's burgeoning solar industry and render solar products unaffordable for many low-income and off-grid families and businesses. However, solar companies anticipate having to lay off full-time staff in Kenya and cancel hiring plans if the Finance Bill applies VAT to solar products. GOGLA, a global solar energy association, calculated that adding VAT to solar products would undermine Kenya’s intended tax revenue generation.

Source: Daily Nation June 14, 2024 15:25 UTC