By Ken Muthomi - Reporter
Kenya, April 20,2026 - The Kenya Revenue Authority (KRA) has directed all fuel stations across the country to update their invoicing systems to reflect the reduced 8% VAT on fuel for the next 90 days.
The move comes days after President William Ruto signed the Value Added Tax (Amendment) Bill, reducing fuel VAT from 16 percent to 8 percent for 90 days to cushion the country against global fuel price hikes.
The tax man has said that all petrol stations must configure the systems to apply the new rate for transactions between April 15 and July 14, 2026, and align with the eTIMS platform.
The authority has urged fuel retailers using third-party Tax Invoicing Solutions (TIS) to also introduce a new category for the 8 per cent rate.
These retailers must also ensure that they update their classification codes in line with the global United Nations Standard Products and Services Code (UNSPSC).
The Head of State signed into law the bill, which was sponsored by National Assembly Majority Leader Kimani Ichung'wah on Friday, April 17.
This followed a request from the Executive who affirmed that it will be fundamental in stabilising petroleum supply and prices amid the ongoing conflict in the Middle East region.
Under the bill, Treasury Cabinet Secretary John Mbadi is allowed to extend this relief for an additional 90 days if necessary.
The Energy and Petroleum Regulatory Authority (EPRA) reduced the price of super petrol by Ksh9.37 per litre and diesel by Ksh10.21 per litre, after the tax changes, just a day after it had announced new fuel prices that had triggered uproar among Kenyans.
The regulator announced that motorists will pay Ksh197.0 per litre for Super petrol and Diesel retailing at Ksh196.3 per litre while the price of kerosene remains unchanged, at Ksh152. 78 per litre.
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