The National Assembly passed the Tax Laws (Amendment) Bill, 2026, which maintains the reduced 8% value‑added tax on petroleum products for an additional three months.

The bill, sponsored by Majority Leader Kimani Ichung’wah, prevents the standard 16% VAT from being reinstated on petrol, diesel and kerosene during the extension period.

Ichung’wah introduced the measure on 14 October 2026, describing the 90‑day cushion as a response to the sharp rise in domestic pump prices.

He added that the legislation also empowers the Cabinet Secretary for the National Treasury to grant a further three‑month extension if Middle‑East geopolitical instability persists.

EPRA’s latest monthly price review showed increases of Ksh12.93 per litre for super petrol, Ksh9.90 for diesel and Ksh28.49 for kerosene.

Following the review, retail prices in Nairobi rose to Ksh226.96 for super petrol, Ksh227.76 for diesel and Ksh219.87 for kerosene.

In Mombasa, the new rates are Ksh223.81 for petrol, Ksh224.61 for diesel and Ksh216.71 for kerosene.

EPRA Director General Edward Mwirigi Kinyua said the regulator chose not to draw on stabilization reserves, aiming to preserve funds for possible future spikes in global crude prices.

Finance Committee Chair Kimani Kuria noted that the Treasury has already foregone roughly Ksh54 billion in revenue over the past six months to sustain existing fuel tax concessions.

While the amendment secures the lower VAT rate, future pump prices will continue to reflect changes in international crude benchmarks, exchange rates and EPRA’s regular pricing parameters.