Kenya's Cabinet Secretary for National Treasury issued Legal Notice No. 70 on 15 April 2026, reducing the Value Added Tax rate applicable to petroleum products from 13% to 8%. EPRA recalculated maximum retail pump prices effective 16 April through 14 May 2026 to reflect the revised rate.
The 5-percentage-point VAT reduction on petroleum products will lower pump prices for diesel, petrol, and other regulated fuels. This directly reduces operating costs for transportation, logistics, freight, and manufacturing sectors reliant on fuel inputs. Industrial consumers may renegotiate fuel supply contracts or adjust inventory timing to capture the price differential. The tariff revision also lowers energy cost pass-through for sectors with high fuel expenditure.