By Brian Kiprono - Reporter
Kenya, April 17, 2026 - Kenyans could soon feel some relief at the pump after President William Ruto approved a temporary reduction in fuel taxes, a move aimed at cushioning households from rising global oil prices.
At State House on Thursday, the President signed into law the Value Added Tax (Amendment) Bill 2026, effectively lowering VAT on petroleum products from 16 per cent to 8 per cent for a three-month period.
The decision follows the Bill’s passage in the National Assembly, where lawmakers backed it as an urgent intervention to address the rising cost of living.
According to Deputy Majority Leader Owen Baya, the pressure on fuel prices has largely been driven by global factors beyond Kenya’s control.
“Kenya exists within the global financial ecosystem… disruptions in the Middle East have greatly affected our country,” Baya told Parliament.
He noted that Kenya’s reliance on imported fuel leaves it exposed to international price shifts and currency fluctuations, which have recently pushed up the cost of petroleum products.
“What we have is not domestic policies… but international trade dynamics and geopolitics,” he added.
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The sharp increase in import costs has had a ripple effect across the economy, pushing up transport fares, food prices and the cost of basic goods.
“Every Kenyan has felt the impact,” Baya said.
By cutting VAT, the government hopes to bring down fuel prices in the short term and ease pressure on key sectors such as transport, agriculture and manufacturing.
While the relief is temporary, the move signals an attempt to shield consumers as global uncertainties continue to shape local prices.