ELDORET, Kenya – President William Ruto has assented to the Tax Laws Amendment Bill 2026, which will cushion Kenyans from the rising fuel prices.
The new law takes effect after the Energy and Petroleum Regulatory Authority (EPRA) announced an increase in pump prices for the period between October 15 and November 14, 2026.
What are the current fuel prices in Kenya?
EPRA increased the prices of super petrol, diesel and kerosene by KSh 12.93, KSh 9.90, and KSh 28.49 per litre, respectively.
Currently, pump prices in Nairobi retail at KSh 226.96 per litre of super petrol, KSh 227.76 per litre of diesel and KSh 219.87 per litre of kerosene.
The energy regulator noted that the sharp rise in pump prices was due to an increase in the landed cost of petroleum products in the month of September 2026.
“The average landed cost of imported Super Petrol increased by 11.81% from US$874.26 per cubic metre in August 2026 to US$977.55 per cubic metre in September 2026; Diesel increased by 11.32% from US$957.05 per cubic metre to US$1065.38 per cubic metre while Kerosene increased by 9.41% from US$1,003.87 per cubic metre to US$1,098.31 per cubic metre over the same period,” read EPRA statement in part.
VAT on petroleum products
Speaking after the signing of the law at Eldoret State Lodge, Uasin Gishu County, on Friday, October 16, President Ruto said the Act extends the reduction of Value Added Tax (VAT) on petroleum products for the next three months to cushion Kenyans from high fuel prices.
The government reduced VAT on petroleum products from 16% to 8%, following an increase in petroleum products early in the year.
“This amendment Act extends the reduction of VAT on petroleum products from 16% to 8% for another 90 days to cushion Kenyans against high fuel prices,” said Ruto.
The head of state noted that the new law also introduces reforms to excise duty on tiles, sanitary ware and glass products to lower construction costs, boost the housing industry and create jobs.
Ruto also assented to the Kenya Revenue Authority (Amendment) Bill, 2026, which strengthens KRA’s governance and financing, improving efficiency and revenue collection without increasing taxes.
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