Temporary three-month VAT cut on petrol and diesel
Aims to ease inflationary pressure from rising global energy prices
Kenya has reduced VAT on key petroleum products from 16% to 8% (originally 13%), effective 16 April to 14 July 2026, under Legal Notice No. 69 issued by the Cabinet Secretary for the National Treasury and Planning.
The temporary measure, announced on 14 April, applies to premium motor spirit (petrol), illuminating kerosene and gas oil (diesel variants). It is aimed at easing pressure on fuel prices following recent increases linked to the Gulf conflict and wider global energy market volatility.
By lowering VAT on these essential fuels, the government is seeking to contain inflationary spillovers into transport and consumer goods. However, the intervention is explicitly time-limited, suggesting a short-term response while longer-term policy options are assessed.
Kenya joins a number of jurisdictions using indirect tax adjustments to manage energy-driven inflation, highlighting the growing role of VAT as a rapid-response economic tool.
See other countries fuel VAT cuts since the February 2026 Iran conflict began.
