Kenya has extended the temporary VAT reduction on specified petroleum products from 16% to 8% until 12 January 2027. The Tax Laws (Amendment) Act 2026 also introduces excise duty reforms for tiles, sanitary ware and glass products to reduce construction costs and support the housing sector.
Kenya has extended the temporary VAT reduction on specified petroleum products from 16% to 8% for a further 90 days, until 12 January 2027, under the Tax Laws (Amendment) Act 2026, signed by President William Ruto on 16 October 2026.
The extension applies to premium motor spirit (gasoline), illuminating kerosene and gas oil.
This follows Kenya’s extension of the temporary VAT reduction from 16% to 8% on premium gasoline, illuminating kerosene and diesel for a further 90 days under the Value Added Tax (Amendment of Rate of Tax) Order 2026, published on 14 July 2026.
The legislation also introduces excise duty reforms for tiles, sanitary ware and glass products to reduce construction costs, support the housing sector and create jobs.
