Ruto signed the petroleum VAT extension law at Eldoret State Lodge.
President William Ruto has extended the reduced petroleum VAT framework as motorists question EPRA’s latest pump prices and petroleum import costs.
President William Ruto has signed a fuel VAT extension into law following EPRA’s latest increase in pump prices. The law allows the Treasury Cabinet Secretary to extend the reduced 8 per cent rate for another 90 days.
Ruto signed the Tax Laws (Amendment) Act, 2026, at Eldoret State Lodge on Friday, October 16. However, the Energy and Petroleum Regulatory Authority had already applied the reduced rate in its October 14 review.
The new pricing cycle runs from October 15 to November 14. Despite the tax relief, Nairobi motorists now face higher petrol and diesel prices, while kerosene recorded the largest increase.
Fuel VAT extension follows EPRA review
In its October 14 statement, EPRA said the revised prices included VAT at 8 per cent. The regulator linked that rate to government policy aimed at cushioning consumers against high international petroleum prices.
However, the previous relief period expired on October 14, two days before Ruto signed the law. That sequence has raised questions about the extension’s timing and the legal provisions governing its implementation.
Under the latest review, Nairobi’s maximum retail prices increased as follows:
- Petrol rose by Sh12.93 to Sh226.96 per litre.
- Diesel increased by Sh9.90 to Sh227.76 per litre.
- Kerosene climbed by Sh28.49 to Sh219.87 per litre.
Meanwhile, the increases have renewed concerns about transport costs, household energy bills and the prices of essential goods.
EPRA cites higher petroleum import costs
EPRA attributed the adjustments to increases in the weighted average cost of imported refined petroleum products. Its figures showed higher landed costs for petrol, diesel and kerosene between August and September.
Petrol’s average landed cost rose by 11.81 per cent, from US$874.26 to US$977.55 per cubic metre. Diesel also increased by 11.32 per cent, from US$957.05 to US$1,065.38 per cubic metre.
By comparison, kerosene’s landed cost rose by 9.41 per cent, from US$1,003.87 to US$1,098.31 per cubic metre. Yet kerosene recorded the largest percentage increase at the pump, prompting questions from the Motorists Association of Kenya.
Motorists seek pricing worksheets and import disclosures
The association has demanded an independent audit of the latest review and the government-to-government petroleum import arrangement. It questioned how changes in landed costs translated into final retail prices, particularly for kerosene.
To clarify those calculations, MAK wants EPRA to publish detailed pricing worksheets covering international benchmarks and landed costs. It also wants those documents to show exchange rates, freight, insurance, taxes, levies, margins and other adjustments.
Beyond the pump-price calculations, the association seeks disclosure of the costs and benefits of the government-to-government arrangement. Its demands cover supplier premiums, financing costs, freight charges and foreign-exchange exposure.
MAK argues that consumers should be able to separate international market pressures from domestic policy decisions affecting fuel prices.
