State extends reduced fuel VAT to October as Middle East tensions bite

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Energy and Petroleum Cabinet Secretary Opiyo Wandayi on July 14, 2026. [Edward Kiplimo, Standard]

The government has extended by another three months the reduced 8 per cent Value Added Tax (VAT) on petroleum products.

This will offer relief to motorists, businesses and households grappling with rising global oil market uncertainty. The tax relief, which was due to expire today, will now remain in force until October 14, 2026.

The announcement was made by Energy and Petroleum Cabinet Secretary Opiyo Wandayi, who said the extension was reached in consultation with the National Treasury as part of broader efforts to shield Kenyans from the impact of volatile international fuel prices.