We will do everything possible to cushion Kenyans from the economic shocks arising from the conflict in the Middle East.
As I announced on Wednesday during my tour of Kisii County, we have reduced VAT on fuel by half, from 16 per cent to 8 per cent. To underpin this move in a legal framework, I have today assented to the Value Added Tax (Amendment) Bill, 2026, State House Nairobi.
We have taken this urgent and necessary step because a surge in the cost of fuel has a ripple effect on consumer goods and services.
While the reduction in VAT will be in operation for 90 days, we have inserted a provision which will enable us to extend the application of the law should the conflict in the Gulf continues to affect oil prices.
I thank the National Assembly for their swift consideration and passage of the Bill in a record one day.