The government of Kenya has reduced the value-added tax (VAT) on Super Petrol, Diesel, and Kerosene from 16% to 13% to cushion consumers from the high landed cost of petroleum products.
In a special gazette issue on Tuesday, Treasury Cabinet Secretary John Mbadi Ng’ong’o, effective April 15 to July 14.
“IN EXERCISE of the powers conferred by section 6(1) of the Value Added Tax Act, the Cabinet Secretary for the National Treasury reduces the rate of tax specified in section 5(2)(b) of the Act from sixteen per cent to thirteen per cent in respect of the goods listed in the Schedule hereto, with effect from the 15th April, 2026 up to the 14th July, 2026,” read the notice.
In addition, the government will further cushion the consumers through the Petroleum Development Levy (PDL) Fund by utilizing approximately KSh6.2 billion to stabilize the pump prices, according to a fuel review report by EPRA.
EPRA, however, explained that super petrol from One Petroleum ex MT Paloma has not been included in the computation of the applicable prices.
“We wish to reiterate that as per the earlier directive from the Government, the Super Petrol delivered by One Petroleum ex MT Paloma has not been included in the computation of the applicable prices,” read part of the report released on Tuesday.
Also Read: EPRA Increases Petrol and Diesel Prices by Up to Ksh40
Ndindi Nyoro’s Request to the Govt to Cut Taxes
The cut on the VAT came hours after the member of parliament for Kiharu Constituency, Ndindi Nyoro, urged the government to cut taxes as a way to avert a sharp fuel price hike.
Speaking to the press ahead of EPRA’s review, Nyoro argued that the government had all the time from February to make the necessary adjustments to the fuel prices, but no action had been taken earlier.
Ndindi Nyoro called out the govt for failing to take the initiative to address the ongoing fuel crisis that resulted from the Middle East conflict.
In addition, he stated that the govt was using the Iran conflict as a scapegoat for high fuel prices.
“The government has 50 % chance of influencing fuel prices at the pump; pump prices that Kenyans pay are made up of 50 % taxes and levies,” Ndindi stated.
Ndindi requested the reduction of VAT on petroleum products and the removal of fuel levies.
Also Read: Energy Committee Assures Country of Adequate Fuel Ahead of EPRA Price Review
Fuel prices
According to EPRA, pump prices for Super Petrol increased by KSh 8.69 per liter, while those of Diesel increased by KSh. 40.30/liter. On the other hand, the price of Kerosene remained unchanged.
EPRA also detailed that the average landed cost of imported Super Petrol increased by 41.53% from US$582.11 per cubic meter in February 2026 to US$823.87 per cubic meter in March 2026, while the landed cost for Diesel increased by 68.72% from US$636.45 per cubic meter to US$1073.2 per cubic meter.
Further, the landed cost of Kerosene increased by 105.15%, from US$639.48 per cubic meter to US$1311.93 per cubic meter, from February to March 2026.
