The government has issued a three month extension on 8pc Value Added Tax on petrol and diesel until October 14, 2026 ahead of fuel price review expected later on Tuesday.
In a statement, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the extension which has been done in consultation with the National Treasury is part of interventions taken by the government to provide confidence that the country can maintain a reliable and uninterrupted fuel supply amid heightened volatility in the global markets.
“These interventions reflect our broader commitment to protecting consumers, supporting businesses and safeguarding the economy from external shocks while ensuring that petroleum products remain as affordable as possible under prevailing global market conditions,” said Wandayi.
In the July-August pricing cycle, the government will also draw Ksh 945 million from the Petroleum Development Levy Fund to subsidize prices which will be published by the Energy and Petroleum Regulatory Authority (EPRA).
Despite the resumption of the war between Iran and the United States leading to disruptions in the Strait of Hormuz, Wandayi has also maintained the the country has sufficient fuel stock and uninterrupted supply of the commodity under the Government-to-Government arragement.
“I therefore wish to reassure motorists, public transport operators, manufacturers, farmers, businesses, investors and all consumers that there is adequate fuel across the country and that the Government remains steadfast in ensuring that that particular situation continues to obtain for the long haul,” he added.
In a bid to cushion consumers from further fuel price hikes, Treasury announced VAT cut on petrol and diesel in April this year from 16pc to 8pc.
The post Kenya extends 8pc VAT on fuel by three months until October appeared first on KBC Digital.