On Tuesday, July 14 2026, the Kenyan Government has extended its reduced Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent for a further three months, until mid-October 2026, to protect households and businesses from fluctuations in global energy prices.
The tax cut, first introduced in April after crude oil prices surged following the United States-Israel conflict with Iran, will remain in place alongside a 945 million Kenyan shilling (US$7.31 million) fuel subsidy to maintain current pump prices during the July–August pricing cycle.
Energy and Petroleum Minister Opiyo Wandayi also assured the public that the country has adequate fuel supplies despite renewed tensions involving the US and Iran. Kenya imports nearly all of its petroleum products from the Middle East through government-to-government supply agreements.