State extends fuel VAT relief as Middle East tensions push up oil prices

Energy CS Opiyo Wandayi addresses the press on July 14, 2026 in Nairobi. [Edward Kiplimo, Standard]

The government has extended the eight per cent value added tax (VAT) rate on petroleum products by three months in what the Energy and Petroleum ministry said would continue to offer Kenyans a degree of relief following the sustained high cost of fuel.

In April, Parliament passed the VAT Amendment Act, reducing VAT on fuel to eight per cent from the standard rate of 16 per cent for three months, but also giving the Treasury Cabinet Secretary a leeway to extend the relief by another three months.