President William Ruto has assented to the Value Added Tax (VAT) Amendment Bill 2026 at State House, Nairobi, cutting VAT on petroleum products from 16 to 8 per cent for three months.
This comes after the National Assembly passed the Value Added Tax (Amendment) Bill, 2026 on Thursday, in a move that aimed at easing public anger over the sharp rise in fuel prices.
The Bill, sponsored by National Assembly Deputy Majority Leader, Hon. Owen Baya , was approved during a special sitting on April 16, with members of parliament describing it as an emergency intervention to ease the cost of living amid global increases in crude oil prices.
The new law provides for a 90-day reduction in VAT, with Treasury CS John Mbadi empowered to extend the relief for an additional 90 days if needed.
According to the Energy and Petroleum Regulatory Authority (EPRA), the tax cut lowers the price of super petrol by Ksh 9.37 per litre and diesel by Ksh 10.21 per litre.
In a statement after assenting to the Value Added Tax (Amendment) Bill, President Ruto said the government had acted to address rising fuel costs, which typically drive up the prices of consumer goods and services.
“As I announced on Wednesday during my tour of Kisii County, we have reduced VAT on fuel by half, from 16 per cent to 8 per cent. To underpin this move in a legal framework, I have today assented to the Value Added Tax (Amendment) Bill, 2026, State House Nairobi,” Ruto said.
“We have taken this urgent and necessary step because a surge in the cost of fuel has a ripple effect on consumer goods and services,” he added.
The President confirmed that a provision has been inserted to the Bill, will enable the government to extend the application of the law should the conflict in the Gulf continues to affect oil prices.
Ruto also thanked the National Assembly for their swift consideration and passage of the Bill in a record one day, adding that his administration will do everything possible to cushion Kenyans from the economic shocks arising from the conflict in the Middle East.
