State to review VAT on fuel, spend Sh17bn to cushion consumers
The review is in bid to avert a steep rise in fuel prices...
✨ Key Highlights
The Kenyan government is set to review Value Added Tax (VAT) on petroleum products and allocate Sh17 billion from the fuel stabilization fund to mitigate a potential sharp increase in fuel pump prices.
- The government plans to spend Sh17 billion from the Fuel Stabilisation Fund.
- The Treasury Cabinet Secretary John Mbadi announced the planned review of the 16% VAT on petroleum products.
- Fuel prices could increase by at least Sh20 due to higher premiums on imported fuel outside the Government-to-Government deal.
Continue Reading
Read the complete article from Nation Business
Part of the Day's Coverage
State to review VAT on fuel, spend Sh17bn to cushion consumers - April 2026
The Kenyan government will review Value Added Tax on petroleum products and allocate Sh17 billion from the fuel stabilization fund to prevent sharp increases in fuel pump prices. In neighboring Tanzania, the energy regulator EWURA announced higher cap prices for petroleum products effective April 1, driven by escalating global supply disruptions from Middle East geopolitical tensions. These developments come as the Kenyan Shilling reached a significant milestone, averaging an exchange rate of 130 against the US Dollar, adding to import cost pressures.
