- Molo MP Kimani Kuria urged the National Assembly to extend the 8% VAT on fuel before it lapses on October 15
- EPRA announced new higher pump prices for the October 15 to November 14 cycle, with Nairobi super petrol rising to KSh226.96
- Kuria warned that reverting to the standard 16% VAT rate would push prices up by at least KSh 15 per litre
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Molo MP Kimani Kuria has called on the National Assembly to urgently extend the reduced 8% Value Added Tax (VAT) on fuel, cautioning that pump prices could climb by at least KSh 15 per litre if the relief expires as scheduled on October 15.
Kuria, who chairs the Departmental Committee on Finance and National Planning, addressed the House on Wednesday, October 14, the same day the Energy and Petroleum Regulatory Authority (EPRA) unveiled higher maximum pump prices for the next pricing cycle.
"The proposed amendment is therefore seeking to maintain the reduced rate beyond its current expiry date, thereby providing continued relief to customers and businesses," Kuria said.
The Amendment and Its Scope
The proposed change targets Section 5 of the VAT Act (Cap 476) and would extend the 8% rate on super petrol, kerosene and diesel.
It would also grant the National Treasury Cabinet Secretary powers to prolong the relief by a further 90 days, a provision Kuria argued was necessary given that the current relief period could lapse while parliament is on recess.
President William Ruto signed the Value Added Tax (Amendment) Bill, 2026, on April 17, slashing VAT on petroleum products from 16% to 8% for an initial 90-day period backdated to April 15.
The government subsequently extended the relief in July until October 14, alongside a KSh 945 million subsidy for the July-August pricing cycle.
The Central Bank of Kenya reported that Murban crude rose to USD 101.67 per barrel on October 8, up from USD 95.76 on October 1, on supply concerns linked to Middle East tensions. Kuria cited these geopolitical pressures as justification for maintaining the tax relief.
New EPRA Prices Take Effect October 15
Hours after Kuria addressed Parliament, EPRA announced new maximum retail prices for the October 15 to November 14 cycle. In Nairobi, super petrol will retail at KSh 226.96, a rise of KSh 12.93 per litre from the previous cycle's KSh 214.03.
Diesel will cost KSh 227.76, up by KSh 9.90, while kerosene jumps sharply to KSh 219.85, an increase of KSh 28.49 per litre.
EPRA attributed the increases to rising international petroleum prices driven by Middle East disruptions, which have pushed up shipping, insurance and fuel procurement costs.
Kuria argued the situation would be considerably worse without the 8% VAT relief in place.
"Had the rates reverted to the standard rate of 16%, prices would have been materially higher on the order of an additional KSh 15 or more per litre depending on the precise taxable base at the time further elevating transport costs and cascading into the price of goods and services," he said.
Energy Cabinet Secretary Opiyo Wandayi confirmed on Tuesday, October 13, that the National Assembly was considering the amendment bill to extend the reduced rate by a further 90 days from October 15.
Source: TUKO.co.ke
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