President William Ruto has announced a set of fuel prices in Kenya relief measures aimed at cushioning households and businesses following the latest review by the Energy and Petroleum Regulatory Authority (EPRA), which pushed petrol and diesel above the KSh 200 mark.
Under the new pricing structure, diesel rose by KSh 40.30 to KSh 206.84 while petrol increased by KSh 28.69 to KSh 206.97. Kerosene remained unchanged at KSh 152.78. EPRA attributed the increase to global oil market pressures, higher shipping costs, and supply disruptions linked to geopolitical tensions, especially in the Middle East.
Has govt reduced VAT to 8% for three months?
Ruto said the government has introduced a temporary tax relief by cutting Value Added Tax (VAT) on petroleum products from 16 percent to 8 percent for the next three months. He explained that the move is designed to immediately reduce pressure on consumers as global fuel costs remain unstable.
He noted that the VAT reduction is part of a broader effort to stabilize fuel prices in Kenya, especially for households and transport operators who have been hit hardest by recent increases. The measure is expected to soften pump prices while global markets remain volatile.
Fuel prices in Kenya: KSh 6.5 billion subsidy to cushion consumers
The President also confirmed that the government has set aside KSh 6.5 billion in subsidies to help reduce the impact of rising fuel costs. The subsidy is aimed at lowering the retail price of petrol, diesel, and kerosene by offsetting part of the import and distribution costs.
He added that current support includes about KSh 20.30 per litre for diesel and KSh 4.92 for petrol, with kerosene receiving additional cushioning to maintain stable pricing. According to him, these interventions are meant to prevent sudden spikes and ensure predictable fuel prices in Kenya.
Ruto further pointed to the Government-to-Government (G-G) fuel import arrangement as a key stabilising factor in maintaining supply across the country. He said the system has helped Kenya secure steady fuel imports even during global disruptions affecting energy markets.
The President said the government will continue monitoring international oil trends and take additional steps where necessary to protect consumers.
