The National Assembly has begun formal consideration of a proposal by Kiharu Member of Parliament Ndindi Nyoro to reduce fuel prices.
Nyoro’s proposal seeks to remove some taxes and levies on petroleum products, targeting both Value Added Tax (VAT) and the Road Maintenance Levy Fund (RMLF).
The House has since confirmed receipt of the proposal and indicated that it will be processed in line with Article 114 of the Constitution and the National Assembly Standing Orders.
“We refer to the above matter and your letter to the Clerk of the National Assembly NA/KIH/02/2026 of 15th May 2026. The letter was received on 18th May, 2026. We advise that the proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders,” read the statement from the National Assembly.
Parliament Sends Proposal to Budget and Finance Committees
Ndindi Nyoro, in a letter dated May 15 and addressed to the Clerk of the National Assembly, Samuel Njoroge, outlined a raft of measures the government should take to reduce fuel prices.
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The National Assembly has referred the proposal to the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning for review.
According to house, the review will focus on how the amendments would affect the approved Budget for the 2025/2026 financial year and the proposed Budget Estimates for 2026/2027.
The committees are expected to engage the Parliamentary Budget Office to provide technical analysis on revenue implications, including potential budgetary gaps that could arise from reduced fuel taxation.
As part of the legislative process, the lawmaker is expected to appear before the Parliamentary Budget Office and the relevant committees to present the economic rationale behind the proposal.
Proposal Seeks Major Cuts in Fuel Taxes and Levies
Kiharu lawmaker Ndindi Nyoro proposed lowering the cost of super petrol, diesel, and kerosene.
“Pursuant to the provisions of the Constitution of Kenya, the Standing Orders of the National Assembly, and the relevant laws governing public finance and taxation, I hereby give formal notice of my intention to initiate legislative amendments aimed at reducing the retail prices of super petrol, diesel and kerosene in Kenya,” read the statement by Nyoro.
According to the proposal, Nyoro is seeking a reduction of the Road Maintenance Levy by Ksh 7 per litre through the revocation of the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024.
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The legislator further proposed that the current levy of Ksh 25 per litre be reduced to Ksh 18 per litre.
The economist and lawmaker is also calling for an amendment to the VAT Act, Cap 476, to remove petroleum products from the standard VAT category and classify them as exempt supplies, which he argues would effectively reduce VAT on fuel from 8 percent to zero.
He says the proposed changes are intended to address inflationary pressures driven by high fuel costs and ease the burden on households and businesses.
In addition to tax reforms, Nyoro proposes a reduction in importers’ and distributors’ margins by Ksh 4 per litre, as well as an additional Ksh 5 billion subsidy for diesel through the Fuel Stabilization Fund.
He notes that based on a monthly consumption of 202 million litres, this would translate to a reduction of about Ksh 24.75 per litre.
According to his projections, the combined measures would lower the price of super petrol to Ksh 187.38 per litre and diesel to Ksh 189.16 per litre.
