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MPs pass 25% tax bill on imported electric transformer, realize later no transformer made locally

Kenyan MPs dupe themselves after passing a bill only to realise later that it will not work as intended. MPs passed a law adding a 25% tax on imported electric transformers to protect local manufacturers, only to later find out that no transformers or parts are made locally.

The Kenyan National Assembly imposed a 25% tax on imported electric transformers to protect local manufacturers.

Still, Kenya Power later confirmed that no transformers or parts are made locally, revealing a lack of consultation.

Some companies in Kenya assemble imported transformer parts, misleading MPs into believing there was local manufacturing to protect, as noted during a parliamentary committee session.

The tax decision aligns with broader policy missteps in Kenya, like making mathematics optional in senior secondary schools under the new competency-based curriculum, reflecting a pattern of poorly researched legislation.

However, sources indicate that there is a company that makes local transformers. Yocean Group Ltd factory in Nairobi assembles transformers locally. According to the Energy CS Opiyo Wandayi, he said the company is the first electricity transformer manufacturer in Kenya.

More sources within the firm reveal that the move was most likely because the Chinese company refused to cede some shares to the ‘big people’, so they had to be punished.

Mother and joyful journalist.

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