NAIROBI, Kenya-Fuel prices in Kenya have dropped below the KSh200 mark following a fresh government intervention that reduced Value Added Tax (VAT) on petroleum products.
In a new directive under Legal Notice No. 70 dated April 15, 2026, the Cabinet Secretary for the National Treasury lowered VAT from 13% to 8%, prompting a downward revision of pump prices by the Energy and Petroleum Regulatory Authority (EPRA).
Under the revised pricing effective April 16 to May 14, 2026, motorists in Nairobi will now pay:
- Super Petrol: KSh197.60 per litre
- Diesel: KSh196.63 per litre
- Kerosene: KSh152.78 per litre
This marks a drop of KSh9.37 per litre for petrol and KSh10.21 per litre for diesel, while kerosene prices remain unchanged.
The reduction comes just days after fuel prices had surged past KSh200, sparking public outrage and concerns over the rising cost of living.
Subsidy adjustments
The government also revised the kerosene subsidy, reducing it from KSh108.10 per litre to KSh96.56 per litre.
Officials said the adjustment reflects the lower tax component and aims to balance consumer relief with fiscal sustainability.
Government response to pressure
The latest move signals an attempt by the government to cushion Kenyans from high fuel costs driven by rising global oil prices and supply disruptions.
Fuel prices have a direct impact on transport, food, and electricity costs, making them a key driver of inflation in the country.
While the VAT reduction is likely to offer short-term relief, analysts warn that the gains could be limited if global oil prices remain volatile.
For many Kenyans, the price drop—though significant—may still not fully offset the economic strain experienced in recent weeks.
The new rates will remain in force until May 14, 2026, when EPRA conducts its next monthly fuel price review.