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August 11, 2026
3h ago

CS Mbadi Hints at New Plan to Lower Fuel Prices Ahead of EPRA Review

CS Mbadi Hints at New Plan to Lower Fuel Prices Ahead of EPRA Review

This comes at a time when the Treasury has warned of higher fuel prices and transport costs, should the situation in the Middle East remain elevated as Kenya moves into 2027...

✨ Key Highlights

The Kenyan Treasury is considering extending the 8% VAT cut on fuel beyond October and introducing further subsidies to mitigate high prices, influenced by the volatile Middle East situation.

  • Treasury Cabinet Secretary John Mbadi is weighing the decision to extend the VAT relief and exploring funding options for subsidies.
  • The government has previously extended the 8% VAT relief and provided a Ksh945 million subsidy from the Petroleum Development Levy.
  • The decision is dependent on the unfolding Middle East conflict and its impact on global oil prices, with a balancing act between revenue needs and inflation concerns.

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