By Ken Muthomi - Reporter
Kenya, June 04, 2026 - The Kenya Revenue Authority (KRA) has forgone KSh9.1 billion in tax revenue between April and May following the government's decision to provide a tax relief in a bid to shield consumers from higher fuel prices.
Appearing before the, said that the government’s decision to reduce Value Added Tax (VAT) on fuel from 16 percent to 8 percent was aimed at cushioning Kenyans against the impact of global fuel price fluctuations following the conflict in the Middle East.
This was revealed by KRA’s Commissioner for Customs and Border Control Lilian Nyawanda, who appeared before the Senate Standing Committee on Energy.
Addressing concerns surrounding a Premium Motor Spirit (PMS) consignment delivered by the vessel MT PALOMA, which is currently under investigation, Nyawanda clarified that the fuel cargo did not enter the Kenyan market and was instead reshipped to other destinations.
Furthermore, other custom entries linked to the consignment have already been cancelled, and taxes amounting to Ksh5.1 billion that had already been paid by various Oil Marketing Companies (OMCs) through the principal importer will be transferred to customs declarations for subsequent fuel imports.
"KRA supports the petroleum supply chain through the expeditious processing of import documentation, timely assessment and collection of duties, VAT, levies and other statutory charges, as well as the prompt release of cargo at petroleum depots in Mombasa and across the country," Nyawanda said.
Nyawanda emphasized that even though the authority’s role in the petroleum supply chain is limited to functions including customs clearance, tax assessment, levy collection, transit control, and trade facilitation, it will be at the forefront of ensuring efficient customs administration and trade facilitation processes of petroleum products.
“KRA remains committed to facilitating legitimate trade, ensuring compliance with customs and tax laws, and supporting government interventions aimed at safeguarding the country's economic interests while maintaining an efficient and secure petroleum supply chain,” the authority stated.
Until June 14, motorists in Nairobi will pay KSh214.25 for Super Petrol, KSh222.86 for diesel, and KSh191.38 for kerosene.
In Mombasa, Super Petrol will retail at Ksh211.09, diesel at Ksh229.58, while kerosene will cost Ksh188.09.
Motorists in Nakuru will pay Ksh213.15 for Super Petrol, Ksh232.27 for diesel, and Ksh190.81 for kerosene. In Eldoret, Super Petrol will retail at Ksh213.92, diesel at Ksh233.09, while kerosene will cost Ksh191.63.
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