Kenya's Treasury plans to cut the Value Added Tax (VAT) on fuel by half for three months, a move expected to cost Sh12.9 billion in lost revenue.

• The shortfall will be covered by approximately Sh588 billion in reserves from asset sales and external borrowing, including proceeds from Kenya Pipeline Company and Safaricom stakes, and a recent Eurobond issuance.
• The Central Bank of Kenya (CBK) Governor, Kamau Thugge, indicated potential additional funding from the World Bank.
• The fuel VAT cut from 16% to 8% is a response to public outcry over rising pump prices, with petrol now retailing at Sh197.60 per litre in Nairobi.