Wakenya now have a few days to tell Parliament what they think about a new plan to lower the Value Added Tax (VAT) on petroleum products to 8 per cent. Right now the law sets it at 16 per cent, so this would be a big change for anyone who buys fuel, whether you drive a private car, run a matatu, or operate a delivery business.
On Friday, October 9, National Assembly Clerk David Njoroge issued a notice that the Tax Laws (Amendment) Bill, 2026, has been tabled in Parliament. The Bill is sponsored by Majority Leader Kimani Ichung’wah. It proposes changes to the VAT Act and the Excise Duty Act, mainly on how fuel is taxed. It also has a separate change on tiles, where excise duty would be calculated based on size instead of weight.
This is not the first time the government has moved on fuel taxes this year. In April 2026, VAT on petroleum products came down from 16 per cent to 13 per cent. Later that same month, it was lowered again to 8 per cent, effective April 16. This happened as oil prices went up because of the conflict in the Middle East, which pushed up the cost of importing fuel. During the April review, petrol prices in Kenya went up by 16 per cent and diesel by 24 per cent before they started to come down a little.
The Energy and Petroleum Regulatory Authority (EPRA) said at the time that the drop from 13 to 8 per cent brought pump prices down by Ksh9.37 per litre for petrol and Ksh10.21 for diesel. President William Ruto also said the government had put Ksh28 billion into fuel price support through stabilisation measures and tax relief during the April to June 2026 pricing cycles.
Still, one thing to keep in mind is that the Bill has not become law yet. Parliament’s committee will go through the public’s views first, then write a report to the House. Whatever pump prices do next will also depend on the monthly fuel review and other costs, not just the tax.
If you want to give your input, the deadline is Tuesday, October 13, 2026, at 5pm. You can email your comments to cna@parliament.go.ke, or drop them off at the Office of the Clerk at the Main Parliament Building in Nairobi. Your voice counts, especially if you are the one paying for fuel every week.
