Fuel prices explained: Taxes and levies Kenyans pay and where the money goes
Every litre of petrol, diesel or kerosene sold in Kenya includes government taxes and levies that help finance road maintenance, railway infrastructure, petroleum regulation and other public programmes. As of Thursday, October 15, 2026, attention to fuel taxation comes amid a new monthly review by the Energy and Petroleum Regulatory Authority (EPRA), with motorists seeking […]
In Kenya, the price of fuel at filling stations includes various taxes and levies that help finance road maintenance, railway infrastructure, petroleum regulation, and other public programmes. The Energy and Petroleum Regulatory Authority (EPRA) calculates maximum pump prices by combining import costs, storage, transportation, distribution margins, and applicable taxes.
However, not every charge included in the pump price serves the same purpose; some raise general government revenue, while others are intended for specific public programmes. Value Added Tax (VAT) is a consumption tax imposed on petroleum products under the Value Added Tax Act, 2013, and supports general government expenditure. Excise duty, charged at product-specific rates under the Excise Duty Act, 2015, contributes to national revenue used to finance public expenditure.
The Road Maintenance Levy, a significant charge on petrol and diesel, is collected to support road maintenance, with the Kenya Roads Board overseeing the fund. Additionally, the Petroleum Development Levy supports petroleum-sector development, including common facilities for fuel distribution and testing, while the Railway Development Levy aims to stabilise pump prices during international price shocks.
Brief written by urgent.news from People Daily Kenya's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
