Kenya has cancelled the VAT on imports of all solar equipment

Kenya has cancelled a 16% VAT rate on all solar equipment imports. The cancellation of the tax was welcomed by Kenyan solar installers and promoters.

LindaWamune, director of operations at SolarAid, Kenya, said: “Reducing the cost-reduction of solar energy products to consumers will help everyone buy solar products. The benefits for Kenyans and the national economy will be enormous. As prices fall We will be able to contact more customers throughout the Kenyan off-grid area."

However, there are still concerns about the impact this may have on Kenya's domestic PV manufacturing industry.

Haijo Kuper, general manager of Kenyan solar manufacturer UbbinkEastAfrica, said: "The new tax exemption, although seemingly a very noble concept, will have a negative impact on local manufacturers."

George Bowman, founding director of AzimuthPower, the recently co-developer of the Changoi PV installation project in northern Kenya, said: "When we started to impose no VAT on solar energy last year, it increased at the time, and now... seems to be again Cancel. I think, overall, this is a good thing because it will make the system more attractive to commercial buyers, but I can understand Haijo's position."