Fuel prices drop after VAT cut to 8 percent
National
By
Mate Tongola
| Apr 15, 2026
Fuel prices drop following a reduction in Value Added Tax (VAT) from 13 percent to 8 percent, with new pump rates taking effect from April 16 to May 14, 2026.
The adjustment follows Legal Notice No. 70 dated April 15, 2026, issued by the Cabinet Secretary for the National Treasury, prompting a review of maximum retail pump prices to reflect the lower tax rate.
In Nairobi, the price of Super Petrol has decreased by Sh9.37 per litre, while Diesel has dropped by Sh10.21 per litre.
The price of Kerosene, however, remains unchanged.
The subsidy on Kerosene has also been reduced, falling from KSh108.10 per litre to Sh96.56 per litre.
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As a result of the review, super petrol, diesel, and Kerosene now retail at Sh197.60, Sh196.63 and Sh152.78 per litre respectively in Nairobi.
The move comes hours after President William Ruto announced the reduction of VAT on fuel from 16 per cent to 8 per cent for three months, alongside a Sh6.5 billion government intervention to cushion Kenyans from the high cost of living.
Speaking in Suneka, the President said the measures were aimed at easing pressure on households following a surge in global fuel prices linked to the ongoing conflict in the Middle East.