GREEN MANUFACTURING POLICY & INVESTMENT GUIDE

The document outlines the pathway for establishing renewable energy manufacturing in Kenya, highlighting the country's goal of Net Zero by 2050 and projected near-term investment opportunities of USD 600 billion. It provides a step-by-step guide for OEMs to incorporate legal entities, secure permits from authorities like NEMA and EPRA, and leverage Special Economic Zones (SEZs) and Export Processing Zones (EPZs) for fiscal incentives. Specific policy landscapes and VAT exemptions are detailed for solar PV, batteries, and electric mobility, while identifying key government agencies such as MITI, KenInvest, and SEZA that facilitate green industrial growth.

• Kenya's energy demand is projected to grow 20-fold by 2050, increasing from 9 TWh in 2020 to 190 TWh. To achieve Net Zero by 2050, the country identifies six anchor decarbonization technologies: electrification, energy efficiency, renewables, low-carbon hydrogen, battery electric technologies, and clean cookstoves, which together cover 89% of CO2 abatement compared to business-as-usual scenarios.
• The Kenyan government offers significant fiscal incentives for companies operating within Special Economic Zones (SEZs) and Export Processing Zones (EPZs). SEZ benefits include preferential corporate tax rates (10% for the first 10 years, 15% for the next 10), VAT exemptions on imported goods, and a 100% allowance on capital expenditure for buildings and machinery. EPZs provide a 10-year corporate and withholding tax holiday and perpetual VAT and customs import duty exemptions on inputs.
• Specific incentives are available for the manufacturing of solar PV and battery technologies, including VAT exemptions on specialized equipment (such as photovoltaic modules, DC charge controllers, and inverters) and zero-rated VAT on the supply of solar and lithium-ion batteries. For electric vehicles (EVs), excise duties are set at a preferential rate of 10%, and electric motorcycles are exempt from a $100 excise duty per unit.
• Establishing a manufacturing facility requires a series of mandatory permits and approvals. These include a Certificate of Incorporation from the Business Registration Service, a PIN from the Kenya Revenue Authority (KRA), and a mandatory Environmental Impact Assessment (EIA) license from the National Environment Management Authority (NEMA), which costs 0.05% of the project cost. Solar PV manufacturers specifically require a Solar Photovoltaic License from the Energy and Petroleum Regulatory Authority (EPRA).
• The document identifies several strategic locations for green manufacturing, including the Naivasha SEZ (focused on the Green Energy sector), Konza Technopolis (focused on Green Energy Engineering), and the Mombasa Industrial Park (focused on Automotive). Private SEZs like Tatu City also provide infrastructure for light industry and solar PV power.

APA

Sustainable Energy for All (2025). GREEN MANUFACTURING POLICY & INVESTMENT GUIDE. https://www.seforall.org/system/files/2025-04/SEforALL-Kenya_Green_Manufacturing_Policy_and_Investment_Guide-2025-FV.pdf

Chicago

Sustainable Energy for All. GREEN MANUFACTURING POLICY & INVESTMENT GUIDE. 2025. https://www.seforall.org/system/files/2025-04/SEforALL-Kenya_Green_Manufacturing_Policy_and_Investment_Guide-2025-FV.pdf.

Wikipedia

{{cite report |author=Sustainable Energy for All |title=GREEN MANUFACTURING POLICY & INVESTMENT GUIDE |date=April 2025 |url=https://www.seforall.org/system/files/2025-04/SEforALL-Kenya_Green_Manufacturing_Policy_and_Investment_Guide-2025-FV.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sustainableenergyforall2025green, author = {{Sustainable Energy for All}}, title = {{GREEN MANUFACTURING POLICY \& INVESTMENT GUIDE}}, institution = {Sustainable Energy for All}, year = {2025}, month = apr, url = {https://www.seforall.org/system/files/2025-04/SEforALL-Kenya_Green_Manufacturing_Policy_and_Investment_Guide-2025-FV.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }