Ruto signs tax relief law reducing fuel VAT by half for three months
The new measure s are expected to provide short-term relief to motorists, transport operators, and businesses heavily reliant on petroleum products. Kenya breaking news | Kenya news today |..
✨ Key Highlights
President Ruto has signed a new law reducing the Value Added Tax (VAT) on fuel by 50 percent for three months, aiming to offer immediate relief to motorists and businesses.
- 50 percent VAT reduction on fuel for 90 days.
- The intervention is led by President Ruto and the Kenyan government.
- This temporary measure allows time to review broader strategies for cushioning Kenyans from fluctuating energy costs.
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Ruto Signs Tax Relief Law Reducing Fuel VAT by Half for Three Months - April 2026
President William Ruto has signed the VAT Amendment Bill into law, reducing the Value Added Tax on petroleum products from 16% to 8% for three months, aiming to offer immediate relief to motorists and businesses. The Central Bank of Kenya forecasts inflation to reach 6.2 percent in July, driven by elevated fuel costs and a prolonged Middle East conflict impacting global oil supply chains. Meanwhile, cooking gas (LPG) prices have surged by up to Sh390 for a 13-kilogramme pack in Nairobi. In Makueni County, residents have expressed that the new fuel prices have not significantly eased the high cost of living, with the financial burden on households remaining a major concern.
