✕

Ruto assents to two tax laws at Eldoret State lodge

National
By Fred Kagonye | Oct 16, 2026
President William Ruto assenting to the Kenya Revenue Authority (Amendment) Bill, 2026, and the Tax Laws (Amendment) Bill, 2026 at Eldoret State Lodge on October 16, 2026. [PCS]

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.

President William Ruto and other State officials after he assented to the Kenya Revenue Authority (Amendment) Bill, 2026, and the Tax Laws (Amendment) Bill, 2026 at Eldoret State Lodge on October 16, 2026. [PCS]

“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.

President William Ruto and other State officials after he assented to the Kenya Revenue Authority (Amendment) Bill, 2026, and the Tax Laws (Amendment) Bill, 2026 at Eldoret State Lodge on October 16, 2026. [PCS]

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.

Share this story
Coe says Kenya fully supports preps for 2029 Nairobi event
World Athletics President Sebastian Coe says Kenya has secured the government’s full support to prepare Nairobi for the 2029 World Athletics Championships.
From drums to silence as tears flow at Mbaraki
Mombasa United’s return to the FKF Premier League ended in heartbreak after a late goal handed Kakamega Homeboyz a 1-0 victory at Mbaraki.
PSG 'got lucky' to win Man City thriller, says Luis Enrique
Paris Saint-Germain boss Luis Enrique said the European champions rode their luck to beat Manchester City 4-2 and maintain a perfect start to their defence of the Champions League.
Rude welcome for Mombasa Utd as AFC Leopards drop points
Newcomers Mombasa United received a rude welcome to the SportPesa League after suffering a narrow 1-0 defeat to Kakamega Homeboyz in yesterday’s match at KPA Sports Club.
Messi's Inter Miami book playoffs with 2-0 win over New York City
Lionel Messi set up a Rodrigo De Paul goal and German Berterame snapped his scoring drought as Inter Miami booked their place in the MLS playoffs with a 2-0 win over New York City
.
RECOMMENDED NEWS