National Treasury Cabinet Secretary John Mbadi has said the government will sit with President William Ruto to decide fresh measures to bring down fuel prices, including possible changes to Value Added Tax (VAT) and other fuel levies.

He spoke on Saturday, May 16, 2026, as pressure mounted from MPs and consumers following the latest fuel price increase by the Energy and Petroleum Regulatory Authority (EPRA), which pushed transport and commodity costs higher across the country.

Mbadi said the government had already spent billions of shillings trying to stabilise fuel prices but admitted the situation remained difficult due to global factors.

“Let me tell you there is a problem in the Middle East and this problem has caused scarcity of fuel and the prices of fuel have gone up,” he said.

“Last month we tried very hard and used Ksh6.2 billion to stabilise the prices of fuel and we reduced VAT by 8 per cent this month. We again added another Ksh5 billion to stabilise the prices of fuel, but they are still high.”

Mbadi on way forward

He added that the government would not act in isolation and would consult widely before making further decisions.

“What we are going to do, we will sit down with the President to make sure that whatever it takes we try to lower the prices of petroleum products so that our people can find peace and our people should not suffer because of rising prices,” Mbadi said.

The CS said Kenya was not alone in facing high fuel costs, pointing out that global prices had also risen sharply.

“If you look at even in the United States where they produce fuel, the prices of petroleum products have gone up by 60 per cent. Everywhere in the world the prices have gone up,” he said.

Mbadi, however, insisted that Kenya must still act to cushion consumers.

“But here at home we must do whatever it takes. This is not something to be politicised. This is something to discuss and debate soberly,” he said.

He explained that the government was looking at two main options to reduce fuel prices: tax changes and additional fiscal support.

“One option is the VAT. The other option is to look for more resources and stabilise the prices of the petroleum commodities,” he said.

Fuel tax debate intensifies

His remarks come at a time when MPs are pushing for urgent intervention in the fuel sector. Kiharu MP Ndindi Nyoro has already written to the Speaker of the National Assembly seeking a recall of Parliament from recess to debate tax cuts, including VAT reduction and lower fuel levies.

Nyoro argues that cutting VAT on fuel from 8 per cent to zero and reducing the Road Maintenance Levy Fund (RMLF) would immediately reduce pump prices.

Kakamega Senator Boni Khalwale has also added to the pressure, urging the government to move beyond statements and table formal tax amendments in Parliament to ease fuel costs. He called for the removal of VAT on petroleum products, reduction of the Road Maintenance Levy Fund, and use of the fuel stabilisation fund to lower pump prices.

“VAT iondolewe kwa petroleum products, ndio bei ya mafuta iende chini,” he said, adding that transport costs had become unbearable for ordinary citizens.

However, his move has triggered a political dispute in Parliament over procedure and responsibility.

Nandi Senator Kiprotich Arap Cherargei dismissed Nyoro’s request, saying only the Majority or Minority Leader can formally request a special sitting of the National Assembly under Standing Order 29.

“The Kiharu MP does not have an iota of moving the National Assembly special sitting but he is just playing to the gallery,” Cherargei said.

He also accused Nyoro of inconsistency, noting that he previously chaired the Budget and Appropriations Committee when the current VAT structure was approved.

Mbadi’s comments also come amid wider political pressure from other leaders calling for tax relief, as fuel prices continue to strain households and businesses.

The latest EPRA review raised Super Petrol by Ksh16.65 and Diesel by Ksh46.29, adding fresh pressure on transport costs, food prices and general inflation.

The latest fuel increase comes just weeks after President William Ruto assented to the Value Added Tax Amendment Bill 2026, which reduced VAT on petroleum products from 16 per cent to 8 per cent.

The move, passed in a record parliamentary sitting, briefly eased pump prices after EPRA reduced petrol by about Ksh9 and diesel by about Ksh10. However, the relief was short-lived as global oil prices and currency pressures pushed costs up again in the following review cycle.

While defending government action, Mbadi said the use of stabilisation funds had helped soften the impact, but could not fully offset global price shocks.

Mbadi hits back critics

At the same time, political tension has grown over how the government communicates economic decisions. Some leaders, including Winnie Odinga, have criticised Treasury officials for their tone when addressing the cost of living debate.

Mbadi responded by defending his record and political experience, saying he had earned his position through years of service.

“You can’t come from nowhere to start advising me. First, seek an elective position,” he said.

He added that he remained focused on stabilising the economy rather than engaging in political disputes.

“I am not ready for petty politics. I will not succumb to that,” he said.