The Kenyan National Assembly has approved a bill to extend the reduced 8% Value Added Tax (VAT) on petroleum products for another 90 days. The measure aims to alleviate financial pressure on citizens facing higher fuel prices.
The State-sponsored Tax Laws (Amendment) Bill, 2026, proposes to maintain the current 8% VAT rate on fuel until December. This extension follows previous reductions and is intended to provide continued relief amid ongoing inflationary pressures. The government has cited rising global fuel prices and regional tensions as key factors influencing the decision.
The tax cut was initially introduced to stabilize the economy and support households. With fuel prices increasing due to geopolitical instability in the Middle East, the government has sought to extend the measure to ensure affordability. The bill now awaits presidential approval before it becomes law. The extension would allow businesses and consumers to benefit from lower costs for another three months.
