Kenyans face 10 per cent matatu fare hike as fuel prices rise
Kenyans could soon pay more for public transport after matatu operators announced plans to increase fares by 10 per cent following a fresh rise in fuel prices. The operators said the increase was necessary to cushion their businesses against rising operating costs after the Energy and Petroleum Regulatory Authority (EPRA) raised pump prices, with petrol […]
President William Ruto signed the Tax Laws Amendment Bill, 2026, on October 16, keeping an eight percent Value Added Tax (VAT) on petroleum products for 90 days. This measure aims to protect Kenyans from the economic impact of the crisis in the Middle East. The law retains the reduced VAT rate on petroleum products, which was previously 16 percent, down from the standard rate.
National Assembly Clerk Samuel Njoroge stated that the reduced rate would stay in force for 90 days, with the possibility of an additional 90-day extension if the Middle East situation does not improve. The aim is to safeguard the Kenyan economy from external shocks that could escalate fuel prices, raise transportation costs, and increase the cost of goods and services.
Additionally, the legislation modifies the taxation of imported tiles and ceramic products, reducing the tax rate for tiles from a weight-based to a square metre-based system, and decreasing ceramic tax from Sh50 to Sh30 per kilogram.
Written by urgent.news from KahawaTungu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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