President William Ruto has signed the Tax Laws (Amendment) Bill, 2026, and the Kenya Revenue Authority (Amendment) Bill, 2026, cutting VAT on petroleum products from 16 percent to eight percent for another 90 days.

Coming days after the Energy and Petroleum Regulatory Authority raised fuel prices, the move aims to cushion Kenyans against the current high cost of living

The two bills also introduce reforms to excise duty on tiles, sanitary ware and glass products to lower construction costs, boost the housing industry and create jobs.

“The Kenya Revenue Authority (Amendment) Act strengthens KRA’s governance and financing, improving efficiency and revenue collection without increasing taxes,” Ruto wrote on his X handle.