Mbadi explains fate of 8% fuel VAT beyond October
Treasury Cabinet Secretary John Mbadi has said the government will assess global oil market conditions before deciding whether to extend the reduced 8 per cent Value Added Tax (VAT) on petroleum products beyond October 2026. Mbadi said on Tuesday, August 11, 2026, that the government was weighing the need to raise tax revenue against the […]
Treasury Cabinet Secretary John Mbadi has announced that the government will evaluate global oil market conditions before deciding if the reduced 8% Value Added Tax (VAT) on petroleum products will continue past October 2026. Speaking on Tuesday, August 11, 2026, Mbadi expressed uncertainty over the situation in the Middle East, stating that the government would keep a close eye on developments as they unfold.
He emphasized the delicate balance between controlling inflation and generating tax revenue, noting that they have been reducing the VAT rate from 16% to 8% in April 2026 to alleviate fuel price pressures and the cost of living. The current VAT rate is set to expire on October 14, 2026, and could be extended, along with potential additional subsidies, depending on global oil market trends.
Mbadi highlighted the unpredictable nature of the Middle East conflict, which can cause sudden shifts in oil prices, making it challenging to predict the future VAT measures. While the government is prepared to consider additional subsidies if necessary, Mbadi stressed the need to carefully weigh the impact on inflation and the economy against the demand for tax revenue to support government programs.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
