Kenya Temporarily Reduces VAT Rate on Certain Fuels

The Kenyan National Assembly announced the approval of the Value Added Tax (Amendment) Bill 2026 on 16 April 2026, which provides for a temporary reduction in the VAT rate from 16% to 8% on:

• Motor Spirit (gasoline) premium;
• Illuminating Kerosene; and
• Gas Oil (automotive, light, amber for high-speed engines).

The reduction will apply for a period of 90 days, with a deemed effective date of 15 April 2026. The approval of the bill follows the recent publication of two VAT amendment orders, …