President William Ruto on Friday, April 17, 2026, assented to the Value Added Tax (Amendment) Bill, 2026, at State House Nairobi.
The new law is expected to provide relief to Kenyans facing rising fuel prices linked to the ongoing conflict involving Iran.
Under the amendment, Value Added Tax (VAT) on fuel has been reduced from 16 per cent to 8 per cent.
President Ruto said the government will continue taking measures to shield citizens from economic shocks.
“We will do everything possible to cushion Kenyans from the economic shocks arising from the conflict in the Middle East,” he said.
The Head of State had earlier announced the planned tax cut on Wednesday during a tour of Kisii County.
“We have taken this urgent and necessary step because a surge in the cost of fuel has a ripple effect on consumer goods and services,” he added.
Ruto noted that the VAT reduction will initially remain in force for 90 days, but includes a provision allowing for extension if the situation in the Gulf continues to affect global oil prices.
“I thank the National Assembly of Kenya for their swift consideration and passage of the Bill in a record one day,” he said.
Meanwhile, opposition leaders have called for additional measures to further reduce fuel prices.
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