Ruto assents to two tax laws at Eldoret State lodge
National
By
Fred Kagonye
| Oct 16, 2026
President William Ruto has today morning assented to the Kenya Revenue Authority (Amendment) Bill, 2026, and the Tax Laws (Amendment) Bill, 2026 at Eldoret State Lodge.
The Tax Laws (Amendment) Act aims to reduce value-added tax (VAT) on petroleum products from 16 per cent to 8 per cent for an initial 90 days.
It now gives Treasury Cabinet Secretary John Mbadi the power to extend the operation of the Bill provision by a further 90 days.
The reduction follows the expiry on October 14 of an earlier 180-day measure introduced in April to cushion consumers against rising fuel prices amid tensions in the Middle East.
The government said the extension would allow the Energy and Petroleum Regulatory Authority (EPRA) to maintain current fuel prices and prevent a sharp increase in fuel costs.
“This will ease the burden on households by protecting against increased costs of transport, essential goods and services across the economy.”
The Bill also amends the Excise Duty Act to change the basis for calculating excise duty on tiles from weight to size, reflecting how the products are sold.
The government said rising prices of tiles, sanitary ware and glass had increased construction costs, including those of publicly funded affordable housing projects.
The Bill also contains proposals to reduce the rate of excise duty on sanitary ware from Sh50 to Sh30 per kilogram, while glass products exported by East African Community member states will be exempt from excise duty.
“Further, the amendments will support the construction and housing sectors, which the government considers a major driver of economic growth and job creation,” the circular read.
The KRA (Amendment) Act, meanwhile, introduces changes to the authority’s board structure, including the removal of ex-officio members and the addition of the Kenya Ports Authority managing director.
The law also guarantees KRA an allocation equivalent to two per cent of the revenue projected in the annual financial estimates. It further provides an incentive equivalent to three per cent of revenue collected in any quarter above the amount budgeted for that period.
The government said the changes were intended to improve KRA’s efficiency and revenue collection, reducing the need to raise taxes.
“The Bill was enacted to enhance efficiency at the Kenya Revenue Authority. It is expected that enhanced efficiency will lead to better revenue collection, hence no need for increase in taxes,” the statement read.