Fuel Tax Relief Extended Amid Soaring Pump Prices
Kenya extends fuel tax relief
The National Assembly has passed a bill to extend the reduced Value Added Tax (VAT) on fuel products at 8% for an additional three months.
This move aims to cushion consumers from soaring pump prices, which have increased by Ksh12.93 per litre for super petrol, Ksh9.90 for diesel, and Ksh28.49 for kerosene in the latest monthly price review.
Legislative Action
The Tax Laws (Amendment) Bill, 2026, prevents the tax rate on petrol, diesel, and kerosene from reverting to the standard 16% VAT rate, offering crucial intervention amidst the surge in domestic pump prices.
The new pricing structure sets retail costs in Nairobi at Ksh226.96 per litre for super petrol, Ksh227.76 for diesel, and Ksh219.87 for kerosene.
Source: Nairobi Wire. AI-assisted summary.
