Proposed Solar VAT Hike Threatens 10,000 Kenyan Jobs, Energy Access

Proposed increases in taxes and reductions in federal support for solar and renewable energy are raising concerns about affordability, job losses, and slowed growth in clean energy sectors globally. In Kenya, the reintroduction of a 16% VAT on solar equipment threatens to increase prices by up to Sh2,000 per unit, risking a 20% market contraction and potentially costing 10,000 jobs, especially impacting rural communities reliant on off-grid solar solutions. In the United States, despite a strong first quarter for solar capacity additions, new tariffs and potential cuts to energy tax credits could slow growth, jeopardizing jobs and investments, particularly in states that supported President Donald Trump in 2024. Similarly, a budget bill passed by House Republicans aims to eliminate most clean energy tax credits except for nuclear power, which experts warn could reduce renewable energy projects by at least 10% over the next decade amid rising energy demand. Western Australia faces a potential electricity crisis as businesses grapple with soaring power bills, casting doubt on the feasibility of shutting coal-fired generators within five years and prompting costly investments in solar and battery systems. These challenges underscore the need for balanced policy approaches that support clean energy expansion while maintaining affordability and job security.