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VAT refund dilemma, a costly manufacturers pain point
Workers inside a detergents manufacturing plant in Nairobi’s Industrial Area. Delays in processing VAT refunds are making it difficult for manufacturers to reinvest in production, pay suppliers on time, or expand their operations.
Picture this. You are a Kenyan manufacturer, producing high-quality products for export. After months of sourcing raw materials, investing in machinery, and ensuring compliance with regulatory requirements, your first shipment is finally ready. The buyer, whether in Europe, Asia, America, or even within Eastern Africa, is eager to receive the consignment.
Your team processes the necessary paperwork, the goods leave the factory, and you breathe a sigh of relief. The deal is sealed, and you anticipate the return on your investment. But beneath this optimism lies an unsettling reality: the Value Added Tax (VAT) refund you are owed is nowhere in sight.
