Kenyans have until Tuesday, 13 October 2026, to submit their views on a proposed law seeking to retain Value Added Tax (VAT) on petroleum products at 8 per cent.
In a notice dated Friday, 9 October 2026, the National Assembly announced that the Tax Laws (Amendment) Bill, 2026, had been introduced in Parliament. The Bill, sponsored by Majority Leader Kimani Ichung’wah, proposes amendments to the Value Added Tax Act and the Excise Duty Act.
The main proposal seeks to maintain VAT on petroleum products at 8 per cent, below the standard rate of 16 per cent. The reduced rate is intended to cushion consumers against the high cost of living amid elevated fuel prices.
The effect of the proposed measure on pump prices will depend on the applicable tax rate and other components used by the Energy and Petroleum Regulatory Authority (EPRA) to determine retail fuel prices.
The 8 per cent VAT rate followed earlier reductions from 16 per cent to 13 per cent, before a further cut took effect in April 2026.
Following the reduction from 13 per cent to 8 per cent, EPRA reported decreases of Sh9.37 per litre in petrol prices and Sh10.21 per litre in diesel prices.
President William Ruto previously stated that his administration had committed approximately Sh28.19 billion towards fuel price support through stabilisation measures and tax relief during the April–May and May–June 2026 pricing cycles.
The temporary 8 per cent VAT rate is scheduled to expire in mid-November 2026. The proposed amendments seek to retain the reduced rate beyond that date.
Beyond petroleum taxation, the Bill also proposes amending the Excise Duty Act to change the method of taxing tiles from a weight-based system to a size-based system.
Individuals and organisations have been invited to submit their views and recommendations to Parliament by 5.00 pm on Tuesday, 13 October 2026.
The proposed amendments have not yet become law. They remain subject to public participation and consideration by the relevant parliamentary committee before the Bill proceeds through the legislative process.
– By John Murunga
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