On 14 October 2026, the National Assembly approved the Tax Laws (Amendment) Bill, 2026, which seeks to retain the reduced 8% value‑added tax on petroleum products for an additional 90 days.

The bill, sponsored by Majority Leader Kimani Ichung’wah, would keep the reduced rate on petrol, diesel and kerosene instead of reverting to the standard 16% rate.

Ichung’wah indicated that the Treasury chief secretary may extend the relief by another three months if the Middle‑East conflict continues, potentially providing up to six months of reduced VAT.

Finance Committee Chairperson Kimani Kuria supported the extension, noting that geopolitical tensions have kept global oil prices high and that the government has already foregone about Ksh54 billion in revenue from fuel tax relief over the past six months.

The move follows a recent EPRA price review that raised pump prices by Ksh12.93 per litre for petrol, Ksh9.90 for diesel and Ksh28.49 for kerosene, pushing Nairobi’s super‑petrol price to Ksh226.96 per litre.

EPRA Director‑General Edward Mwirigi explained that the regulator chose not to tap the stabilisation fund for this cycle, reserving it for possible future price spikes.

If enacted, the bill will keep the 8% VAT in place, but final pump prices will still depend on international oil prices, exchange rates and other components used by EPRA in its monthly calculations.