Ruto promises to reduce fuel VAT to 8%
President William Ruto has announced a raft of measures aimed at protecting Kenyans from rising fuel costs, as global supply disruptions linked to the Middle East crisis continue to push prices upward.
In a statement shared on Wednesday, April 15, 2026, Ruto said the government had moved to intervene to shield households and businesses from the ripple effects of the international fuel market, which has recently experienced instability due to geopolitical tensions.
He explained that the intervention is part of a broader effort to ensure that the cost of living remains manageable for ordinary Kenyans, especially at a time when fuel prices directly affect transport, food, and basic commodities across the country.
“In a decisive move to protect and ease the burden on Kenyans from the volatile shocks of the conflict in the Middle East, the government has stepped in with a package to keep life affordable,” the statement reads.

The President further pointed to the government-to-government fuel import arrangement as a key pillar in stabilising prices, noting that the framework has played an important role in managing supply and preventing extreme fluctuations at the pump over time.
“Building on the foundation of the G-to-G fuel arrangement, which has successfully provided long-term stability to the pump price, the National Treasury has implemented a reduction in VAT on fuel, slashing it from 16% to 8% in the next three months,” the statement reads.
Ruto also revealed that the tax cut would be complemented by additional financial support from the government, aimed at cushioning consumers from what could have been a sharp increase in fuel prices if no intervention had been made.
He emphasised that the combined measures are designed to absorb part of the shock and ease pressure on consumers, adding that the tax relief is combined with a Ksh 6.5 billion subsidy from the petroleum development levy.
“This targeted tax relief, combined with a Ksh 6.5 billion subsidy from the Petroleum Development Levy, serves as a cushion against what would have otherwise been a spike in pump prices,” the statement reads.











