The government has extended the 8 percent Value Added Tax (VAT) rate on petroleum products for another three months.
In a statement on Tuesday, July 14, Energy Cabinet Secretary Opiyo Wandayi explained that the extension is intended to cushion consumers from global oil market pressures.
CS Wandayi noted that the extension follows consultations with the National Treasury to cushion the public from continued volatility in the global oil market.
“As part of the Government’s commitment to cushioning households and businesses from international market volatility, in consultation with the National Treasury, we have extended the application period for 8 per cent Value Added Tax (VAT) on petroleum products for a further three months, until October 14, 2026,” Wandayi said.
The energy CS also said the government would inject Ksh945 million from the Petroleum Development Levy during the July–August 2026 pricing cycle to maintain current pump prices.
According to Wandayi, the interventions demonstrate the government’s commitment to protecting consumers, supporting businesses, and shielding the economy from external shocks.
“Further, in the July-August 2026 pricing cycle, the Government will deploy a subsidy from the Petroleum Development Levy to the tune of Sh945 Million to sustain the current price levels.
“These interventions reflect our broader commitment to protecting consumers, supporting businesses and safeguarding the economy from external shocks while ensuring that petroleum products remain as affordable as possible under prevailing global market conditions,” Wandayi said.
Further, CS Wandayi reassured motorists, public transport operators, manufacturers, farmers, investors and other consumers that the country has adequate fuel stocks and a resilient import and distribution system capable of withstanding global market disruptions.
“I wish to assure all Kenyans that these global developments have not affected the availability of petroleum products in our country. Fuel remains readily available across the country, supported by adequate national stocks, a resilient and fully operational import and distribution system, and the continued success of the Government-to-Government (G2G) fuel supply arrangement,” he added.
