President William Ruto has signed the Tax Laws (Amendment) Act, 2026, extending the reduced eight per cent VAT rate on petroleum products after Parliament approved the measure.
The signing took place at Eldoret State Lodge on Friday, 16 October. Accounts of the ceremony describe a 90-day extension for petrol, diesel and paraffin, with provision for a further 90 days if the conditions behind the relief persist.
The National Assembly’s account of the bill confirms that it sought to continue the lower rate for three months and allow the Treasury Cabinet Secretary to extend it for another three months if the Middle East conflict continued.
Ruto also signed the Kenya Revenue Authority (Amendment) Act. The fuel-tax assent advances the proposal beyond the parliamentary vote covered by Political Headache on 15 October.
VAT is one component of the pump price. Changes in international fuel costs, exchange rates and other charges can still offset the benefit of a lower tax rate.
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WHAT TO WATCH NEXT
- The gazetted Act and its commencement and extension provisions.
- The VAT component in subsequent EPRA pump-price calculations.