Kenya keeps 8% fuel VAT as EPRA raises Nairobi petrol to KSh 226.96 a litre

Kenya's Energy and Petroleum Regulatory Authority (EPRA) has set maximum pump prices for 15 October to 14 November that are inclusive of value-added tax (VAT) at 8%, the Kenyan news site Pulse Kenya reported on 14 October 2026. The reduced 8% rate on petrol, diesel and kerosene had been due to expire on 14 October. The rate continues through EPRA's price notice, while a Bill before the National Assembly that would extend it by 90 days to mid-December has not yet been passed.

The Tax Laws (Amendment) Bill, 2026 is sponsored by Majority Leader Kimani Ichung'wah. The measure is meant to keep cushioning consumers from rising global fuel prices. The Bill would extend the application period of the 8% rate by 90 days from 15 October 2026.

From 15 October to 14 November, the maximum price in Nairobi is KSh 226.96 a litre for super petrol, up KSh 12.93, KSh 227.76 for diesel, up KSh 9.90, and KSh 219.87 for kerosene, up KSh 28.49. The previous prices, for 15 September to 14 October, were KSh 214.03 a litre for super petrol and KSh 217.86 for diesel, after EPRA left them unchanged. Those prices were valid until midnight on 14 October. At the Central Bank of Kenya's rate of KSh 129.94 to the US dollar on 8 October and Xinhua's published market rate of 673.13 yuan per US$100 on 12 October, the new petrol and diesel prices each come to about 11.8 yuan a litre.

On 12 October the National Assembly approved a motion cutting the publication period for the Bill from 14 days to 10. Ichung'wah moved it under Standing Order 120 and said the aim was to finish the tax law "before the end of next week". The Bill is National Assembly Bill No. 65 of 2026.

The shorter publication period does not constitute approval of the Bill's tax measures, and the National Assembly's Finance and National Planning Committee has invited the public and stakeholders to submit comments. A notice from the National Assembly Clerk, dated 9 October, set a deadline of 5pm on 13 October for submissions, and the committee would review them before reporting to the House.

The same Bill would change how excise duty on tiles is calculated, from weight to size.

The government forwent KSh 9.1 billion in April and May, an average of about KSh 4.5 billion a month, the Kenya Revenue Authority (KRA) said, according to Business Daily. Extending the 8% rate to December could cost upwards of KSh 36 billion in VAT collections, the paper reported. The Kenyan news site Eastleigh Voice also put the possible loss at more than KSh 36 billion. At the same rates, KSh 9.1 billion is about 470 million yuan, KSh 4.5 billion about 230 million yuan and KSh 36 billion about 1.86 billion yuan.

Brent crude has traded between US$101.21 and US$106.65 a barrel since the start of September, after a re-escalation of the US–Iran conflict in September sparked a rally in global prices.

Energy Cabinet Secretary Opiyo Wandayi said in a statement on 13 October that fuel stocks were adequate and that cargoes were arriving and being offloaded on schedule. The landed cost of super petrol at the port of Mombasa rose to US$1,385 a tonne in September from about US$1,199 in August, and diesel stood at US$1,313 a tonne in September, according to the statement. Wandayi said the global oil crisis would put further pressure on pump prices in the coming weeks.