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.
READ MORE
KCB shareholders approve Sh22.5b dividend payout
National Bank reports 275pc jump in Q1 profit
New push to increase funding for research and development
Kenya positioned as Africa's next AI innovation hub
Chaka's housing boom bets on investors' demand for city-style
New coating system looks to spruce up Kenya's construction finishes
Court declines to fast-track petition against EPRA fuel prices
Govt moves to close Sh56bn rice import gap with irrigation push
Changing face of Nairobi's downtown as investors splash billions on new skyscrapers
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.