Kenya is mandatory to equip solar battery cabinet manufacturers

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The installation of solar PV system and battery based systems in premises shall be in compliance with all other relevant technical, legal and regulatory requirements applicable in Kenya.

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(No. 1 of 2019) The Draft Energy (Solar Photovoltaic Systems

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4 FAQs about Kenya is mandatory to equip solar battery cabinet manufacturers

Are solar PV systems taxed in Kenya?

In Kenya, since 2013, there have been several revisions of the VAT and Customs Management Act vis-à-vis application of taxes and duties on solar PV modules, balance of system components and appliances designed for use on solar PV systems.

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%.

Which equipment should be covered under a solar PV exemption?

The industry adopted a wider interpretation and considered equipment such as solar powered TVs, radios, refrigerators, water pumps, cookers etc. exclusively designed to be powered by solar PV should be covered under the exemption.

What is a VAT exemption for solar water heaters & batteries?

Item 45 of the Part I of the First Schedule to the VAT Act 2013 provides VAT exemption on supply of “specialized solar equipment and accessories, including solar water heaters and deep cycle-sealed batteries which exclusively use or store solar power”.