Ruto Cuts Fuel Prices After VAT Slash in Surprise Reversal

By James Murimi - Reporter

Kenya, April 15, 2026 - President William Ruto’s administration has announced a significant reduction in fuel prices, offering relief to consumers just a day after an earlier price hike triggered public concern.

In a statement issued Wednesday evening, Energy and Petroleum Regulatory Authority (EPRA) Acting Director General Joseph Oketch said the review follows a government decision to lower Value Added Tax (VAT) on petroleum products.

“Pursuant to Legal Notice No. 70 dated April 15, 2026, the Cabinet Secretary for the National Treasury has revised the Value Added Tax rate from 13 per cent to 8 per cent,” said Oketch.

He added: “Accordingly, we have recalculated the maximum retail pump prices that will be in force from April 16, 2026 to May 14, 2026, taking into account this revised Value Added Tax rate.”

The adjustment sees the price of Super Petrol in Nairobi drop by KSh9.37 per litre, while Diesel falls by KSh10.21 per litre. The price of Kerosene remains unchanged, although its subsidy has been reduced from KSh108.10 to KSh96.56 per litre.

Following the review, motorists in Nairobi will now pay KSh197.60 for a litre of Super Petrol, KSh196.63 for Diesel, and KSh152.78 for Kerosene.

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EPRA said the updated petroleum pump price list and a detailed price breakdown have been published in accompanying annexes.

The latest move marks a sharp turnaround from Tuesday night, when the regulator had announced an increase in fuel prices—sparking criticism and piling pressure on the government to cushion consumers amid rising living costs.

The VAT reduction is expected to ease the burden on households and businesses, with fuel prices having a direct impact on transport and commodity costs across the economy.