MPs vote to keep VAT on fuel at 8% for another 90 days
The Treasury CS can stretch the relief to six months if the Middle East conflict keeps oil prices high.
Based on reporting by Kenyans.co.ke and The Kenya Times.
An Astrol petrol station on Red Hill Link Road, Nairobi. File photo, 2026. Photo: Queen Asali / Wikimedia Commons, CC BY-SA 4.0
The National Assembly on Wednesday passed the Tax Laws (Amendment) Bill, 2026, which keeps value added tax (VAT) on petrol, diesel and kerosene at 8% instead of letting it return to the standard 16%.
The bill, sponsored by Majority Leader Kimani Ichung'wah, extends the lower rate by 90 days. The Treasury Cabinet Secretary can extend it by a further three months if the conflict in the Middle East continues, for a total of six months.
Finance Committee chairperson Kimani Kuria said rising global oil prices threatened to push up fares, production costs and the cost of living. He said the government had given up about Sh54 billion in revenue through fuel tax relief over the past six months.
The bill also changes how excise duty on ceramic tiles is charged, from weight to surface area, which Ichung'wah said would ease the burden on importers.
The vote came a day before EPRA's higher pump prices took effect on 15 October. Reports of the debate did not mention any opposition to the bill, which becomes law once the President signs it.
