The Kenya Revenue Authority has extended the temporary reduction in VAT on gasoline, kerosene, and diesel from 16% to 8% for another 90 days, continuing the fuel tax relief introduced under President William Ruto's KES 6.5 billion cost-of-living support package.

RF Report

The Kenya Revenue Authority (KRA) has published the Value Added Tax (Amendment of Rate of Tax) Order 2026 on 14 July 2026, in which it extended the temporary VAT reduction from 16% to 8% on premium gasoline (motor spirit), illuminating kerosene, and gas oil (diesel) for another 90 days.

Under the Value Added Tax (Amendment of Rate of Tax) Order 2026, the reduced rate will remain in effect from 15 July to 14 October 2026, following the initial relief period that began on 15 April 2026.

Earlier, on 16 April 2026, President William Ruto announced a KES 6.5 billion relief package to help cushion Kenyans from rising fuel prices, including a temporary reduction in the VAT rate on fuel products from 16% to 8% for a period of three months.