Good News for Kenyans as Parliament Makes This Move Hours After EPRA Announced New Fuel Prices

Kenyans are facing another increase in fuel prices, raising concerns about the cost of transport and other basic goods. Parliament is now considering measures to prevent an additional tax burden as tensions in the Middle East continue to affect the global oil market.

On Wednesday, October 14, 2026, Molo MP Kimani Kuria urged the National Assembly to extend the reduced 8% Value Added Tax (VAT) on petroleum products. The current relief is due to expire, and lawmakers are seeking to maintain it for another 90 days.

The proposed extension seeks to protect motorists, businesses and households from even higher fuel costs. Kuria warned that returning to the standard 16% VAT rate could increase pump prices by at least KSh 15 per litre.

The move comes as the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices for the period running from October 15 to November 14.

In Nairobi, super petrol will retail at KSh 226.96 per litre, while diesel will cost KSh 227.76. Kerosene prices have also increased to KSh 219.87 per litre.

The latest increases reflect rising international fuel costs linked to renewed conflict in the Middle East. Disruptions to oil supplies and shipping have put additional pressure on fuel import costs.

Higher fuel prices could also affect public transport fares, food prices and the cost of moving goods across the country.

The government has previously used reduced VAT and other interventions to cushion consumers against rising international oil prices. However, the latest price review shows that the existing measures have not prevented another increase at the pump.

The proposed tax extension will now be important in determining whether Kenyans receive further relief as the global situation continues to change.

As Parliament considers the measures, motorists and businesses will be watching closely for a decision that could affect their daily expenses.

Do you think extending the 8% fuel VAT will provide enough relief for Kenyans?

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