Fuel Relief: Ruto Extends 8% VAT on Petrol, Diesel and Paraffin for 90 DaysFuel Relief: Ruto Extends8% VAT on Petrol, Dieseland Paraffin for 90 Days

The extension keeps a pump-price cushion in place just as global oil costs press on Kenyan importers. The first relief period expired on 14 October, and the new law can be renewed for a further 90 days if the Middle East supply disruption continues, according to the Kenya Times report on the signing. Mr Ruto said the measure is meant to "cushion Kenyans against high fuel prices."

What the fuel VAT law does

The law maintains the 8% rate on the three fuels for an initial 90 days. A second 90-day period depends on conditions in the Middle East, so the tax relief is tied to the same oil market that has pushed up import costs.

Mwenendo earlier reported on how the Nairobi petrol ceiling rose KSh 12.93 ($0.10) a litre for the 15 October to 14 November pricing cycle. The VAT decision does not change that ceiling, but it affects the tax component the Energy and Petroleum Regulatory Authority (EPRA) will work from at its next monthly review.

The sources reviewed do not give the revenue cost of the extension to the Treasury, and Mwenendo has not estimated one. They also do not say how much of the cut reaches motorists. One report on the signing contains a garbled description of the rate change, which Mwenendo has not relied on.

The same Tax Laws (Amendment) Act adjusts excise duty on building materials. Tiles will carry duty of KSh 400 ($3.08) per square metre instead of a weight-based charge. Duty on selected imported ceramic sanitary fittings falls from KSh 50 ($0.38) to KSh 30 ($0.23) per kilogramme, a KSh 20 ($0.15) cut. Float glass and some other glass products from East African Community partner states that meet the bloc's rules of origin are exempt.

New KRA board and funding terms

Mr Ruto also assented to the Kenya Revenue Authority (Amendment) Bill, 2026, sponsored by National Assembly Majority Leader Kimani Ichung'wah. The Managing Director of the Kenya Ports Authority joins the board of the Kenya Revenue Authority (KRA). The National Assembly described this as "an efficiency measure due to the co-dependent nature of the operations" of both bodies, which share customs and port revenue work.

The Attorney General, the Principal Secretary for the National Treasury and the KRA Commissioner General move from ex officio to substantive membership. Parliament passed the bill on 7 October.

The Kenya Times also reports that KRA will receive at least 2% of its estimated annual revenue collections, plus 3% of revenue collected above the quarterly target. A second report on the signing did not mention the funding formula, so readers should treat the figures as awaiting confirmation from the published Act.

As Mwenendo earlier reported, the Central Bank of Kenya held its rate at 8.75% while inflation edged up, which leaves fuel costs central to household budgets. The next test will be the EPRA review due by 14 November, when the VAT rate, landed costs and oil prices will show how much of the relief survives at the pump.