The Cabinet Secretary for National Treasury issued a surprise addendum to Kenya's April fuel pricing cycle on April 15, cutting Value Added Tax on petroleum products from 13% to 8% and forcing EPRA to recalculate pump prices just 24 hours after announcing record increases.
- •The revised prices, effective April 16 to May 14, 2026, bring super petrol in Nairobi down KSh 9.37 to KSh 197.60 per litre, diesel down KSh 10.21 to KSh 196.63, while kerosene remains unchanged at KSh 152.78.
- •President William Ruto first announced the measure during a public address in Kisii on April 15, framing it as part of a broader government response to the fuel cost shock.
- •The VAT cut was implemented the same day, faster than the three-month timeline Ruto had initially suggested, indicating the government moved under immediate public pressure.
In Mombasa, super petrol now retails at KSh 194.32 and diesel at KSh 193.35. Both products in Nairobi fall back below KSh 200, partially unwinding the record increases announced the previous day.
The April 16 prices include three cushioning measures applied in rapid succession: a KSh 6.2 billion Petroleum Development Levy Fund deployment absorbing KSh 4.68 per litre on petrol and KSh 23.92 on diesel; a VAT cut from 16% to 13% via Legal Notice No. 69 on April 14; and the further reduction from 13% to 8% via Legal Notice No. 70 on April 15. The kerosene stabilization deficit narrows from KSh 108.10 to KSh 96.56 per litre under the revised structure.
Legal and tax experts have raised issue with the addendum, as the law only allows the Cabinet Secretary to alter the tax rate by 25%, with any additional cuts requiring parliamentary approval.
The addendum also came too late to prevent the immediate economic transmission of the April 15 shock. The Matatu Owners Association, for example, announced a 25% fare increase on April 15, with operators reporting an additional KSh 2,400 in daily diesel costs per vehicle. Whether the revised prices prompt a reversal remains to be seen.
Taxes and levies still dominate Kenya's pump price structure despite the VAT cuts. The opposition has called for a special parliamentary sitting, scrapping of the G2G fuel deal, and full removal of VAT, warning of further action if demands are not met.
