Kenya’s government published a bill in the Official Gazette on 3 March 2024, proposing the scrapping of the 25% excise duty on imported electric transformers and parts under the Excise Duty (Amendment) Bill 2025.
The bill was made public on 18 March 2025.
The government introduced an excise duty on 27 December 2024 through the Tax Laws (Amendment) Act to support local manufacturers and boost domestic production. The proposed repeal of the excise duty aims to lower the costs of manufacturing transformers with imported parts, reduce electricity costs, and support power infrastructure projects, including the expansion and maintenance of the national grid.
The proposed Bill to repeal the excise duty will take effect retroactively, starting from 27 December 2024.
