NAIROBI, April 17 (Xinhua) -- Kenyan President William Ruto on Friday signed the 2026 Value Added Tax (Amendment) Bill into law, effectively halving VAT on fuel from 16 percent to 8 percent to cushion Kenyans against rising petroleum prices triggered by geopolitical tensions in the Middle East.
The presidency said the reduced tax rate will apply for an initial 90-day period, with a provision for the National Treasury to extend it for another three months should global oil prices remain volatile.
The measure aims to stabilize fuel prices following public outcry over recent hikes driven by the Middle East conflict and global market volatility.
The latest review means that a liter of petrol in Nairobi will retail at 197.60 shillings (1.53 U.S. dollars), while diesel will cost 196.63 shillings from Thursday.
"To cater to any need that may arise after the initial period, the Bill additionally empowers the (National Treasury) Cabinet Secretary to extend the operation of the reduction for a further period of 90 days," the amendment law states.
The amended bill was introduced in the National Assembly on Thursday and passed the same day.
"Noting that an escalation of the cost of fuel has a knock-on effect on the cost of consumer goods and services, the reduction is meaningful and shall significantly ease the burden on Kenyan households with respect to the cost of essential goods and services across the economy," the law said. ■
