KRA Reveals Billions Lost After Fuel Tax Cut Directives
President William Ruto made a directive on a reduction in the VAT on fuel prices to cushion Kenyans from the ripple effects of the war in the Middle East...
✨ Key Highlights
The Kenya Revenue Authority (KRA) has reported a significant tax revenue loss of Ksh9.1 billion following the government's decision to halve the Value Added Tax (VAT) on fuel.
- The revenue loss occurred between April and May 2026.
- This measure was implemented by President William Ruto to reduce the cost of living.
- A portion of the lost revenue, Ksh5.1 billion paid on a specific fuel consignment, is expected to be recovered through future imports.
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KRA Reveals Billions Lost After Fuel Tax Cut Directives - June 2026
The Kenya Revenue Authority has reported a significant tax revenue loss of Ksh9.1 billion following the government decision to halve the Value Added Tax on fuel. Kenyans significantly reduced household spending in May as rising inflation forced businesses to increase prices, according to the latest Stanbic Bank Purchasing Managers Index report. The Kenya Bankers Association is urging the Central Bank of Kenya to increase the Central Bank Rate at its upcoming MPC meeting on June 9, 2026, to combat rising inflation, which could lead to more expensive loans for borrowers.
