Gov’t Cuts Fuel VAT To 13pc, To Utilise Sh6.2 From The Petroleum Development Levy To Cushion Consumers
NAIROBI, Kenya, Apr 14- The government has reduced Value Added Tax (VAT) on petroleum products from 16 percent to 13 percent and committed Sh6.2 billion - Kenya breaking news | Kenya news today | Capitalfm.co.ke..
✨ Key Highlights
The Kenyan government has reduced Value Added Tax (VAT) on fuel and will utilize funds from the Petroleum Development Levy (PDL) to cushion consumers from rising global oil prices.
- VAT on Super Petrol, Diesel, and Kerosene cut from 16% to 13%.
- Sh6.2 billion from the Petroleum Development Levy (PDL) Fund will be used to stabilize prices for the period April 15 to May 14, 2026.
- The Energy and Petroleum Regulatory Authority (EPRA) implemented the measures amid significant increases in the landed cost of imported petroleum products.
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Petrol Jumps Sh28, Diesel Sh40 in EPRA Review - April 2026
Motorists and households in Kenya face fuel price hikes announced by EPRA for April-May 2024. Super Petrol increased by Sh28 to Ksh206.97 per litre and Diesel by Sh40 to Ksh206.84 per litre in Nairobi. The government reduced fuel VAT to 13 percent and will utilize Sh6.2 billion from the Petroleum Development Levy to cushion consumers. Kiharu MP Ndindi Nyoro says Kenya has a 50 percent chance to lower costs through domestic policy choices. Kenyans face a potential Ksh3.2 billion bill from a cancelled fuel import deal.
