Parliament Okays Bill to Reduce Tax on Fuel After EPRA Hike

The new fuel prices have attracted uproar from motorists and Kenyans who have faulted the government over the high fuel prices, which are set to impact the transport and production sectors.

Kenyans could continue benefiting from reduced Value Added Tax (VAT) on petroleum products after the National Assembly passed a Bill seeking to maintain the rate at 8 per cent for another three months, following a sharp increase in fuel prices.

The Tax Laws (Amendment) Bill, 2026, sponsored by Majority Leader Kimani Ichung’wah, seeks to retain the reduced rate on petrol, diesel and kerosene instead of reverting to the standard VAT rate of 16 per cent.

The proposed extension comes as motorists and households face higher fuel costs after the Energy and Petroleum Regulatory Authority (EPRA) raised pump prices by Ksh12.93 per litre for petrol, Ksh9.90 for diesel and Ksh28.49 for kerosene in its latest review.

Source: Kenyans.co.ke