Ruto promises to reduce fuel VAT to 8%

Fuel Pump For illustration

William Ruto has unveiled a series of measures aimed at cushioning Kenyans from rising fuel costs, as global supply disruptions linked to the Middle East crisis continue to push prices upward.

In a statement issued on Wednesday, April 15, 2026, the President said the government had stepped in to shield households and businesses from the ripple effects of instability in the international fuel market.

He noted that the intervention is part of broader efforts to keep the cost of living manageable, particularly as fuel prices directly influence transport, food, and other essential commodities.

“In a decisive move to protect and ease the burden on Kenyans from the volatile shocks of the conflict in the Middle East, the government has stepped in with a package to keep life affordable,” the statement read.

Ruto pointed to the government-to-government (G-to-G) fuel import arrangement as a key strategy in stabilising supply and moderating price fluctuations at the pump.

“Building on the foundation of the G-to-G fuel arrangement, which has successfully provided long-term stability to the pump price, the National Treasury has implemented a reduction in VAT on fuel, slashing it from 16 per cent to 8 per cent for the next three months,” the statement added.

The President further revealed that the tax cut will be complemented by additional financial support through a subsidy drawn from the Petroleum Development Levy.

“This targeted tax relief, combined with a Ksh6.5 billion subsidy from the Petroleum Development Levy, serves as a cushion against what would have otherwise been a spike in pump prices,” the statement read.

The government maintains that the combined measures are designed to absorb part of the global shock and ease pressure on consumers amid rising fuel costs.