Ruto assents to VAT Amendment Bill, slashing fuel tax to 8%
By Cynthia Lodite, April 17, 2026President William Ruto has assented to the Value Added Tax Amendment Bill 2026, which seeks to regularise the slashing of VAT on fuel from 16% to 8%.
The President assented to the bill on Friday, April 17, 2026, at the State House, Nairobi. The VAT bill seeks to cushion Kenyans against rising fuel prices.
The Bill, which was sponsored by the Kilifi North Member of Parliament, Owen Baya, was introduced and passed in a record 1 hour on Thursday, April 16, 2026, in the National Assembly.
At the same time, the VAT bill will also regularise the price reduction effected on Wednesday night by the Electricity and Petroleum Regulatory Authority (EPRA), which saw the price of petrol lowered by Ksh9 and diesel by Ksh10.
The bill came hours after Ruto announced a 50% reduction in Value Added Tax (VAT) on fuel to cushion Kenyans from the shockwaves of the historic hike in fuel prices.
The Value Added Tax Amendment Bill of 2026, which effectively reduces the VAT on fuel from 16% to 8%, is expected to last for the next ninety days; however, should the situation persist, the MPs explained an extension of more days.
EPRA tax reduction
Energy and Petroleum Regulatory Authority (EPRA) recently announced a downward adjustment in fuel prices following a reduction in Value Added Tax (VAT).
In an addendum to its earlier pricing review released on April 14, EPRA said the revised prices follow a directive by the National Treasury to cut VAT on petroleum products from 13 per cent to 8 per cent under a legal notice dated April 15, 2026.
The regulator noted that the new adjustment will take effect from April 16 through May 14, 2026, replacing the prices announced on Tuesday, April 4.
“As a result, the pump price per litre in Nairobi of Super Petrol and Diesel decreases by Ksh9.37 and Ksh10.21, respectively, while that of Kerosene remains unchanged,” read the statement by EPRA.
In the initial review, the cost of Super Petrol and Diesel had risen sharply by Ksh28.69 and Ksh40.30 per litre respectively, while Kerosene prices remained unchanged.