The Consumers Federation of Kenya (COFEK) has condemned the Petroleum Development Levy (Amendment) Order, 2025, issuing fresh demands to the government.
The Petroleum Development Levy (Amendment) Order, 2025 (Legal Notice No. 181 of 2025) was issued on November 10, 2025, by the Cabinet Secretary for Energy and Petroleum, Opiyo Wandayi, setting a uniform levy rate of KSh 5.40 per unit on most petroleum fuels and related products.
In a statement on March 25, COFEK termed the amendment a major financial burden imposed on Kenyans without parliamentary debate or public participation.
“COFEK wishes to formally note that the way this levy amendment was carried out is just as concerning as its content. A financial burden of this size — affecting every petroleum product that drives the Kenyan economy — was imposed via a quiet gazette notice, without parliamentary debate, public involvement, or stakeholder consultation,” the statement read in part.
The federation argued that the levy, set at KSh 5.40 per liter on key petroleum products, increases the overall tax burden on fuel, with Value Added Tax (VAT) added on top of multiple existing levies, raising the costs of transportation, production, and basic goods.
It warned that rising fuel costs will ripple through the economy, increasing inflation and mainly impacting low-income households, farmers, manufacturers, and public transit users.
Additionally, it criticised the inclusion of LPG in the levy, arguing that it contradicts the government’s efforts to promote clean energy.
COFEK Issues Fresh Demands to Govt
In its request to the government, COFEK called for the immediate suspension of the Petroleum Development Levy (Amendment) Order, 2025, until a full parliamentary review and public consultation process are completed.
It also demanded a transparent fuel tax audit to consolidate and rationalise all existing petroleum levies into a more accountable and consumer-sensitive framework.
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The federation urged the Parliament to enforce oversight by ensuring that any future changes to fuel levies are debated and approved before being gazetted. It also called on the Energy Cabinet Secretary to publicly disclose the revenue collected from the levy and how it is used.
“Parliament to assert its constitutional oversight role by requiring that any amendment to petroleum levies be tabled before the National Assembly for debate and approval before gazettement,” they noted.
Furthermore, COFEK demands the reversal of the LPG levy to promote clean energy adoption and insists that all future petroleum levy reviews include a mandatory 30-day public participation period.
Petroleum Development Levy (Amendment) Order, 2025
According to Legal Notice No. 181 of 2025, the amendment updates the existing Petroleum Development Levy framework by replacing the previous rate schedule with a revised structure that mostly standardizes charges across petroleum products.
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However, it does not establish a new levy but adjusts how rates are applied under the current law.
The notice sets a standard levy of KSh 5.40 per liter (KSh 5,400 per 1,000 liters) for major fuels, including gasoline, diesel, jet fuel, crude oil, and most fuel oils. Liquefied Petroleum Gas (LPG), including propane and butane, is also taxed at the same rate on a per-kilogram basis.
Lower rates of KSh 400 per 1,000 liters apply to selected products such as illuminating kerosene and certain residual or light fuel oils, while natural gas and related gaseous products are also charged at the reduced rate.
The levy applies to petroleum products imported into or refined within Kenya, with proceeds allocated to the Petroleum Development Levy Fund to support sector development and infrastructure.
