Kenyans have been given five days to submit their views on a new proposed law which seeks to reduce Value Added Tax (VAT) on petroleum products to 8 per cent.

🇰🇪 Breaking It Down

In a notice dated Friday, October 9, National Assembly Clerk David Njoroge announced that the Tax Laws (Amendment) Bill, 2026, had been introduced in Parliament to implement the changes.

Sponsored by Majority Leader Kimani Ichung’wah, the Bill proposes amendments to the VAT Act and the Excise Duty Act, targeting fuel taxation and the calculation of excise duty on tiles.

The proposed 8 per cent VAT rate seeks to cushion Kenyans against rising global fuel prices, although the impact on pump prices will depend on the monthly fuel pricing review and other cost components.

📌 What You Need to Know

The proposal comes after the government reduced VAT on petroleum products from 16 per cent to 13 per cent in April 2026 before lowering it further to 8 per cent, effective April 16, amid rising international oil prices linked to the Iran war.

The conflict in the Middle East pushed up fuel import costs, with petrol prices in Kenya rising by 16  per cent and diesel prices increasing by 24 per cent during the April 2026 review before dropping slightly.

At the time, the Energy and Petroleum Regulatory Authority (EPRA) said the VAT reduction from 13 per cent to 8 per cent lowered the pump prices by Ksh9.37 per litre for petrol and Ksh10.21 for diesel.

President William Ruto later said the government had committed Ksh28 billion towards fuel price support through stabilisation measures and tax relief during the April-May and May-June 2026 pricing cycles.

Kenyans wishing to participate in the latest public consultation can email their comments to [email protected] or deliver them to the Office of the Clerk at the Main Parliament Building in Nairobi.

Beyond fuel tax, the Bill also proposes changing the calculation of excise duty on tiles from a weight-based measure to a size-based measure.

📰 Source: Kenyans.co.ke