NAIROBI, Kenya, April 15 – President William Ruto has announced plans to further reduce Value Added Tax (VAT) on petroleum products to cushion Kenyans from rising fuel costs.
The Head of State said the VAT will be lowered to 8 percent within the next three months as part of efforts to stabilize pump prices.
His remarks come after the Energy and Petroleum Regulatory Authority (EPRA) reduced VAT by three percentage points to 13 percent from 16 percent in the latest fuel review.
Despite the adjustment, fuel prices still rose sharply, with super petrol increasing by Sh28.69 per litre and diesel by Sh40.30. This pushed the price of petrol in Nairobi to Sh206.70 per litre, while diesel now retails at Sh206.84. Kerosene prices were maintained at Sh152.78.
EPRA attributed the increase to higher landed costs of imported fuel. The average landed cost of super petrol rose by 41.53 percent to $823.87 per cubic metre, while diesel jumped by 68.72 percent to $1,073.20. Kerosene also surged by 105.15 percent to $1,311.93 per cubic metre.
Kenya, like many other countries, continues to face supply disruptions linked to geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, a key global oil transit route.