Ruto assents to VAT Bill allowing fuel tax cut to 8 per cent
National
By
Esther Nyambura
| Apr 17, 2026
On Friday, April 17, President William Ruto assented to the Value Added Tax (Amendment) Bill, 2026, allowing the Treasury to cut VAT on petroleum products to 8 per cent.
The new law amends Section 6 of the VAT Act to permit the Treasury Cabinet Secretary to vary VAT on petroleum products beyond the previous cap, in a bid to ease fuel costs amid the Middle East crisis.
Previously, the Act allowed the Treasury CS to adjust VAT by up to 25 per cent of the standard rate of 16 per cent.
However, the President said the 25 per cent cap was insufficient to cushion Kenyans from rising fuel prices.
READ MORE
Experts slam 'temporary fixes' to Kenya's Sh12.6tr debt
1,100 face job losses as Meta severs ties with Kenyan content moderator
Lawyer: Move to reduce VAT to 8 per cent by Treasury unconstitutional though a relief to Kenyans
State's appetite for domestic debt to grow with fuel VAT cut
Stocks rise as optimism over Mideast war takes hold
New 2030 plan targets billions in financing for farmers and MSMEs
Three Kenyan startups picked for Africa eye health accelerator
Maina named Vision 2030 acting director
Kenyan firms eye Caribbean footprint as Afreximbank seals St Kitts trade forum deal
Experts say Ruto is driving economy to the ground over rising fuel prices
President Ruto assents to VAT (Amendment) Bill, 2026, allowing Treasury to cut fuel VAT to 8 percent for 90 days to ease costs. pic.twitter.com/m7nzkiT0JD — The Standard Digital (@StandardKenya) April 17, 2026
The Amendment Bill was introduced in the National Assembly on Thursday, April 16, by Deputy Majority Leader Owen Baya.
In a record one hour, Members of Parliament debated and passed the Bill, effectively legalising the Treasury’s directive to cut VAT by 50 per cent.
The revised VAT rate will apply for 90 days, with provisions allowing the Treasury to extend the period by a further 90 days if the fuel crisis persists.
Without the amendment, the latest fuel price changes would have been illegal.
Following the adjustment, a litre of super petrol will retail at Sh197.60, while diesel will cost Sh196.63.