Kenya Extends 8% VAT on Fuel for Another 90 Days
The National Assembly approved the Tax Laws Amendment Bill to extend the 8% VAT on petroleum products for another 90 days.
In Brief
- •The National Assembly approved the Tax Laws Amendment Bill to extend the 8% VAT on petroleum products for another 90 days.
- •The extension aims to cushion consumers from rising global oil prices, particularly due to tensions in the Middle East.
- •The bill also grants the National Treasury Cabinet Secretary the power to extend the relief for an additional three months if needed.
- •The amendments passed the third reading on Wednesday and now await presidential assent.
- •Fuel prices rose sharply in the latest review cycle, despite the inclusion of the 8% VAT.
Why It Matters
The extension of the 8% VAT on fuel is a significant measure to mitigate the impact of rising global oil prices on Kenyan consumers. It aims to reduce the burden on transportation, production costs, and the general cost of living. However, the continued sharp increase in fuel prices, despite the VAT reduction, highlights the ongoing challenges posed by global oil market fluctuations.
Key Details
- VAT Rate
- 8%
- Extension Period
- 90 days
- Additional Extension Power
- 3 months
- Super Petrol Price Increase
- Ksh 12.93 per litre
- Diesel Price Increase
- Ksh 9.90 per litre
- Kerosene Price Increase
- Ksh 28.49 per litre
Context & Background
The 8% VAT on petroleum products was initially introduced in April 2026 to provide relief to consumers amid rising global oil prices. The extension is part of ongoing efforts to manage the economic impact of fuel price volatility.
Original Reporting & Sources
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