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.