Ruto signs Kenyan tax law keeping fuel VAT at 8% for 90 days and changing tile excise

President William Ruto signed the Tax Laws (Amendment) Act, 2026 and the Kenya Revenue Authority (Amendment) Act, 2026 at Eldoret State Lodge in Uasin Gishu County on 16 October 2026, Capital FM and The Star reported.

The tax law keeps value-added tax (VAT) on petrol, diesel and kerosene at 8 per cent, against the standard 16 per cent, for 90 days. The Cabinet Secretary for the National Treasury may extend the period by a further 90 days through a Gazette notice, The Star reported.

The first period of reduced fuel VAT was introduced in April 2026 and ended on 14 October, the news website Pulse Kenya reported.

National Assembly Majority Leader Kimani Ichung'wah sponsored both bills, the news website The Kenya Times reported. He said the VAT Act needed to be amended "once again for another 90 days", as quoted by the state broadcaster KBC. Pulse Kenya reported that the Tax Laws (Amendment) Bill was introduced in the National Assembly on 8 October and passed with amendments on 14 October. The Star reported that Prime Cabinet Secretary Musalia Mudavadi and Attorney General Dorcas Oduor attended the signing.

The Energy and Petroleum Regulatory Authority (EPRA) announced new maximum pump prices on 14 October for 15 October to 14 November, with VAT at 8 per cent, Capital FM reported. In Nairobi, petrol rose by KES 12.93 to KES 226.96 a litre, diesel by KES 9.90 to KES 227.76 and kerosene by KES 28.49 to KES 219.87.

The Act also changes excise duty on building materials. Excise on tiles moves from a weight basis to a size basis, at KES 400 per square metre, Capital FM reported, citing the legislative brief. Pulse Kenya said the duty applies to imported ceramic tiles. Excise on imported sanitary ware falls from KES 50 to KES 30 per kilogramme, according to Capital FM and Pulse Kenya.

Pulse Kenya said the description of imported float glass was revised so that qualifying glass from East African Community partner states is exempt from excise duty. The Star said the changes are meant to support the construction and housing sectors.

The Kenya Revenue Authority (Amendment) Act adds the managing director of the Kenya Ports Authority to the board of the Kenya Revenue Authority (KRA), The Star reported. It also amends sections 7 and 8 of the KRA Act to remove the term "ex officio member", and Capital FM said officials who previously sat on the board ex officio now have substantive membership.

Capital FM reported that the Act guarantees KRA at least 2 per cent of the revenue projected in the annual financial estimates, and provides an incentive equal to 3 per cent of revenue collected above the quarterly estimate. KBC said the changes strengthen KRA's governance and financing without increasing taxes.