Kenyans have until Tuesday, October 13, to submit their views on a proposed law seeking to reduce Value Added Tax (VAT) on petroleum products to 8 per cent.
In a notice dated Friday, October 9, National Assembly Clerk David Njoroge invited members of the public, businesses and other stakeholders to give their views on the Tax Laws (Amendment) Bill, 2026, which has been introduced in Parliament.
The Bill, sponsored by National Assembly Majority Leader Kimani Ichung’wah, proposes changes to the VAT Act and the Excise Duty Act.
If approved, the proposed changes would provide for an 8 per cent VAT rate on petroleum products, down from the standard rate of 16 per cent.
The proposal comes as the government seeks to cushion consumers against rising international oil prices, which have affected fuel costs in Kenya.
In April 2026, the government reduced VAT on petroleum products from 16 per cent to 13 per cent before lowering it further to 8 per cent, effective April 16.
At the time, the Energy and Petroleum Regulatory Authority (EPRA) said the reduction from 13 per cent to 8 per cent lowered the pump price of petrol by Ksh9.37 per litre and diesel by Ksh10.21 per litre.
The fuel price increases had been linked to rising international oil prices amid the conflict involving Iran and other countries in the Middle East.
During the April 2026 fuel price review, petrol prices in Kenya rose by 16 per cent, while diesel prices increased by 24 per cent before later dropping slightly.
President William Ruto also announced that the government had committed Ksh28 billion towards fuel price support through stabilisation measures and tax relief during the April-May and May-June 2026 pricing cycles.
However, the proposed tax changes have not yet been approved by Parliament. Their effect on pump prices will depend on the final legislation and other components used in monthly fuel price reviews.
How to Submit Views
Kenyan citizens who wish to make their submissions regarding the Bill may submit their concerns via email to cna@parliament.go.ke or deliver them physically to the Office of the Clerk at the Main Parliament Building, Nairobi.
Submissions should be made not later than 5pm Tuesday, October 13, 2026, giving the public five days from the date of the notice to air their opinions.
In addition to the proposed amendments regarding fuel excise duties, the Bill also proposes the amendment of the computation of excise duty on tiles from a weight-based system to that of area-based computation.
The committee shall deliberate on the submissions received and come up with a report to be tabled in the House.
Amendments, if any, will be subject to parliamentary approval.
