President William Ruto has signed into law the Tax Laws Amendment Bill 2026 extending the 8% Value Added Tax on fuel for another 90 days.
The new law which is effective October 15, 2026 extends the reduction of VAT on petroleum products from the previous 16% in what the government says is meant to cushion Kenyans against high fuel prices.
Already, EPRA had accommodated the tax rate in its latest monthly fuel review cycle which saw a litre of super petrol went up by Ksh 12.93, diesel by Ks 9.90 and kerosene by Ksh 28.49.
“That period is coming to an end and therefore we need to amend the same VAT Act to once again for another 90 days with the hope that the war in the Middle East will come to an end. If it would not come to an end, we would likely be on recess and therefore we also allow the cabinet secretary the latitude to legally extend that period for a further three months and then we can review that position as the situation pertains then,” said Kimani Ichung’wa, Majority Leader.
The Tax Laws Amendment Act it also introduces reforms to excise duty on tiles, sanitary ware and glass products to lower construction costs, boost the housing industry and create jobs.
President Ruto also signed the the Kenya Revenue Authority (Amendment) Act which strengthens KRA’s governance and financing, improving efficiency and revenue collection without increasing taxes.
