President William Ruto has unveiled a KES 6.5 billion intervention package, reducing VAT on fuel from 16% to 8% for three months to shield Kenyans from rising fuel costs, while keeping kerosene prices unchanged.
President William Ruto has announced a KES 6.5 billion package aimed at cushioning Kenyans from high fuel prices, including a temporary reduction in Value Added Tax (VAT) on fuel products from 16% to 8% over the next three months on 16 April 2026.
Under the measure, the VAT rate will be cut for Motor Spirit (gasoline) premium, illuminating kerosene, and gas oil used in automotive and light high-speed engines. The reduction applies for 90 days, with a deemed effective start date of 15 April 2026.
The approval follows earlier VAT amendment orders that had already phased the rate down first to 13% and subsequently to 8%, aligning the final legislative framework with those interim adjustments.
Speaking in Suneka town in Bonchari Constituency, Kisii County, the President said the measure is designed to ease pressure on households and businesses affected by rising global energy costs.
The government has also released additional funds to help moderate fuel prices, with a specific commitment to keep kerosene prices unchanged during the intervention period.
Ruto noted that the government is closely monitoring developments in the Middle East conflict, which continues to influence global fuel price volatility, and will take further steps if necessary to shield consumers from further shocks.
