Exempt solar equipment from VAT, stakeholders urge Govt

Stakeholders in the renewable energy industry are calling for a VAT exemption on solar equipment and accessories as well as capacity building and support for technological innovation. 

TVET Principal Secretary Kevit Desai says promotion of technological innovation and skills among the academia are needed in order to build capacity for the renewable energy sector.

Renewable energy currently account for 80 percent of the energy mix as the government continues to scale up electricity generation using geothermal, wind and solar.

Players in the renewable energy industry say having adequate power from renewable sources will not only ensure security of supply at a lower cost but also enhance Kenya’s business competitiveness.

They called on the government to re-look at VAT exemption on solar equipment as it has lot of ambiguity leaving it open to interpretation.

This has locked out low income earners and off grid customers from accessing affordable solar lights, phone chargers, TVs and related equipment.

Desai noted that partnership between technical vocational and education training, industries and Government is essential if Kenya is to successfully build capacity in the renewable energy sector.

They also called for closer working relationship between TVET institutions and the industry in research, and human capacity to support innovation, skills and implementation of renewable energy solutions