President William Ruto’s administration has reduced fuel prices after lowering VAT on petroleum products.
The move comes after public complaints over rising fuel costs and the increasing cost of living.
The fuel prices drop after VAT cut will offer temporary relief to motorists and businesses.
Treasury reduces fuel VAT rate
The National Treasury reduced VAT on fuel from 13% to 8%.
The change followed Legal Notice No. 70 issued on April 15, 2026.
The Energy and Petroleum Regulatory Authority (EPRA) then adjusted pump prices to reflect the new tax rate.
The new prices took effect on April 16, 2026, and will run until May 14, 2026.
Petrol and diesel prices fall
EPRA announced a reduction in Super Petrol and Diesel prices.
Super Petrol dropped by KSh 9.37 per litre.
Diesel prices fell by KSh 10.21 per litre.
However, kerosene prices remained unchanged.
In Nairobi, motorists will pay KSh 197.60 per litre for Super Petrol.
Diesel will retail at KSh 196.63 per litre.
Kerosene will remain at KSh 152.78 per litre.
Fuel price cut follows public pressure
The government announced the reduction days after a sharp increase in fuel prices.
The earlier price rise sparked complaints from consumers, transport operators, and businesses.
Many Kenyans raised concerns about the effect of fuel costs on household expenses.
The new adjustment aims to reduce pressure on consumers.
Kerosene subsidy adjusted
Although kerosene prices remained unchanged, the government reduced its subsidy.
The subsidy dropped from KSh 108.10 to KSh 96.56 per litre.
EPRA said the new prices reflect the lower VAT rate.
The authority also noted that global oil prices continue to influence fuel costs.
Impact on transport and economy
The fuel reduction could affect transport costs and inflation trends in the coming weeks.
Consumers will now watch whether the lower prices lead to reduced fares and cheaper goods.
However, international oil market changes may continue to affect future fuel prices.
