Ndindi Nyoro proposes VAT cuts, levy removal to lower fuel prices below Sh190
Kiharu MP Ndindi Nyoro proposes scrapping VAT on fuel, reducing margins and removing the Road Maintenance Levy to lower petrol and diesel prices below Sh190...
✨ Key Highlights
Former House Budget Committee Chair Ndindi Nyoro has proposed a three-part plan to slash fuel prices below Sh190 per litre, following recent steep increases announced by the Energy and Petroleum Regulatory Authority (EPRA).
- Proposal includes cutting distributor margins by Sh4 per litre, removing the 8% VAT on fuel, and abolishing the Sh7 Road Maintenance Levy increment.
- The Kiharu MP warned of severe economic repercussions and inflationary pressures if fuel prices are not controlled.
- Nyoro intends to seek amendments to the VAT Act and the Road Maintenance Levy framework, stating that tax burdens and margins are the primary drivers of high pump prices, not just global costs.
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Petrol Price Rises by Ksh 16, Diesel Ksh 46 in New Review - May 2026
Kenyan motorists are bracing for significant pain at the pump as fuel prices surge in the latest review by the Energy and Petroleum Regulatory Authority (EPRA). The new prices, effective from 15th May to 14th June 2026, see a substantial jump in the cost of Super Petrol and Diesel, with petrol increasing by Ksh 16.65 and diesel by Ksh 46.29 per litre. Motorists and households in Kenya are facing significantly higher transport and energy costs as a result of these changes. Additionally, fuel stations across Kenya are experiencing widespread stock-outs due to a cash-flow crisis at the Kenya Pipeline Company (KPC) and delays in subsidy payments. Matatu operators have announced a proposed 50% fare hike and threatened a nationwide strike starting Monday if the government fails to intervene on rising fuel costs. Kiharu Member of Parliament Ndindi Nyoro has proposed immediate legislative changes including VAT cuts and levy removal to significantly reduce fuel prices below Sh190 per litre.
