William Ruto has signed into law a tax relief measure that will see Value Added Tax (VAT) on petroleum products reduced from 16 percent to 8 percent for the next three months, offering temporary relief to millions of Kenyans grappling with high fuel prices.
The new law, passed swiftly by Parliament, is part of the government’s response to rising global oil prices, largely driven by geopolitical tensions in the Middle East. The reduction is expected to immediately lower pump prices, easing pressure on transport costs, food prices, and the overall cost of living.
According to government officials, the 90-day window will give policymakers time to assess global fuel trends and determine whether further interventions will be necessary. The move comes after public outcry following a sharp increase in fuel prices earlier in April, which had pushed petrol and diesel costs significantly higher.
The Energy and Petroleum Regulatory Authority (EPRA) is expected to adjust fuel prices downward in line with the tax cut, with early estimates already showing a drop in pump prices across major towns.
While the measure provides short-term relief, economists warn that it may not fully shield Kenyans from global market shocks, especially if oil prices continue to rise. Still, the VAT reduction signals the government’s effort to stabilise the economy and protect households during a period of heightened global uncertainty.
The new law, passed swiftly by Parliament, is part of the government’s response to rising global oil prices, largely driven by geopolitical tensions in the Middle East. The reduction is expected to immediately lower pump prices, easing pressure on transport costs, food prices, and the overall cost of living.
According to government officials, the 90-day window will give policymakers time to assess global fuel trends and determine whether further interventions will be necessary. The move comes after public outcry following a sharp increase in fuel prices earlier in April, which had pushed petrol and diesel costs significantly higher.
The Energy and Petroleum Regulatory Authority (EPRA) is expected to adjust fuel prices downward in line with the tax cut, with early estimates already showing a drop in pump prices across major towns.
While the measure provides short-term relief, economists warn that it may not fully shield Kenyans from global market shocks, especially if oil prices continue to rise. Still, the VAT reduction signals the government’s effort to stabilise the economy and protect households during a period of heightened global uncertainty.
