President William Ruto has signed the Value Added Tax (Amendment) Bill, 2026 into law, lowering VAT on petroleum products from 16% to 8% in response to public anger over rising fuel prices.
The Bill, sponsored by National Assembly Majority Leader Kimani Ichung’wah, was introduced, debated, and passed on April 16 without amendments, showing how urgent the government considered the situation.
The move followed pressure from the Executive to address the effects of global fuel supply disruptions linked to the ongoing conflict in the Middle East.
Under the new law, the reduced VAT rate takes effect from April 15, 2026, and will remain in place for 90 days.
Treasury Cabinet Secretary John Mbadi has the option to extend the relief for another 90 days if needed.
The tax cut has already affected pump prices. According to the Energy and Petroleum Regulatory Authority (EPRA), the price of super petrol has dropped by Ksh 9.37 per litre, while diesel has fallen by Ksh 10.21 per litre.
Kerosene prices remain unchanged.
Current maximum retail prices are:
* Super petrol: Ksh 197.60 per litre
* Diesel: Ksh 196.63 per litre
* Kerosene: Ksh 152.78 per litre
The government says the reduction is meant to ease the cost of living, noting that fuel prices directly impact transport, food costs, and the overall price of goods and services across the economy.
However, the move has faced criticism. Some argue that the government often allows fuel prices to rise sharply, then introduces small reductions that appear to respond to public pressure without fully addressing the underlying issue.
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