Ruto signs Tax Laws Amendment Bill, retains 8pc VAT on fuel for 90 Days
President William Ruto signed the Tax Laws Amendment Bill, 2026, into law, retaining the reduced eight per cent Value Added Tax (VAT) on petroleum products for 90 days to cushion Kenyans against the economic effects of the crisis in the Middle East. Ruto signed the Bill on Friday, October 16, at the Eldoret State Lodge, [...] The post Ruto signs Tax Laws Amendment Bill, retains 8pc VAT on fuel…
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.
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