Ruto cuts VAT from 16 to 8 percent for three months

President William Ruto addressing residents of Suneka, Kisii County. [PCS]

President William Ruto has announced a reduction of Value Added Tax (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.

"We have also stepped in to bring down VAT from 16 percent to 8 percent for the next three months until we make sure that we have gone through this phase," Ruto stated.

Ruto noted that despite the external shocks, Kenya has maintained a steady supply of fuel through the government-to-government (G2G) arrangement, which has helped moderate price spikes over the past two years.

He said the Sh6.5 billion injection would be used to stabilize fuel prices, while the temporary VAT reduction is intended to provide immediate relief to consumers as the country navigates the current economic strain.

The Head of State also announced that kerosene prices would remain unchanged to protect low-income households that rely on the fuel for daily use.

“We have stepped in as government to reduce the cost of fuel and cushion the people of Kenya during this period,” Ruto said, emphasizing the administration’s commitment to shielding citizens from rising living costs.