Nairobi — A Bill to amend the Value Added Tax (VAT) Act has been formally introduced in the National Assembly, marking the first step in a legislative process aimed at reducing the tax burden on petroleum products.
Majority Leader Kimani Ichungwah has proposed lowering VAT on fuel from 16 percent to 8 percent for a three-month period. The Bill has been referred to the House Finance and Planning Committee, where it will undergo parliamentary scrutiny and public participation before it can be enacted into law.
The move follows widespread public outcry after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices. Super petrol rose by Sh28.69 per litre, while diesel increased by Sh40.30 per litre. As a result, a litre of super petrol now retails at Sh206.97, and diesel at Sh206.84.
President William Ruto yesterday unveiled a package of interventions to address fuel price pressures amid global market volatility. The proposed VAT reduction is seen as a key measure to ease the cost of living for Kenyans, particularly in light of rising energy costs that have impacted transport, goods, and services.
Lawmakers and stakeholders will now engage in detailed debate and consultation on the Bill, with its passage expected to provide temporary relief to consumers if approved.
