Kenya extends VAT exemptions

Kenya has agreed to increase the number of basic goods which are exempt from its 16% VAT rate.

• The new goods include:
• Solar energy equipment
• Animal feed and related equipment
• Fishing nets

The move comes following the introduction of the Kenya VAT Act 2013, which removed the 12% reduced VAT rate and the reclassification of many previously exempt goods as subject to the standard VAT rate.

Other basic goods which are VAT exempt include: basic grains, rice, bread, agricultural supplies, medicines and pharmaceuticals.