Kiharu Member of Parliament, Ndindi Nyoro, has written an urgent letter to the National Assembly seeking immediate amendments to key tax laws, which he says could significantly reduce fuel prices in the country to below Ksh 190 per litre.

In a letter dated May 15 and addressed to the Clerk of the National Assembly, Samuel Njoroge, CBS, Ndindi Nyoro proposes changes to the Value Added Tax (VAT) Act and the Road Maintenance Levy Fund (RMLF) framework as part of a wider plan to lower the retail cost of super petrol, diesel, and kerosene.

“Pursuant to the provisions of the Constitution of Kenya, the Standing Orders of the National Assembly, and the relevant laws governing public finance and taxation, I hereby give formal notice of my intention to initiate legislative amendments aimed at reducing the retail prices of super petrol, diesel and kerosene in Kenya,” reads the letter in part.

Ndindi Nyoro Proposes Ksh 7 Levy Cut

Ndindi Nyoro is seeking a reduction of the Road Maintenance Levy by Ksh 7 per litre through the revocation of the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024.

The legislator proposes that the current levy of Ksh 25 per litre be reduced to Ksh 18 per litre.

Nyoro is also calling for an amendment to the VAT Act, Cap 476, to remove petroleum products from the standard VAT category and classify them as exempt supplies.

This, he argues, would effectively reduce VAT on fuel from 8 percent to zero.

He says the proposed changes are intended to address inflationary pressures driven by high fuel costs and ease the burden on households and businesses.

In addition to tax reforms, Nyoro proposes a reduction in importers’ and distributors’ margins by Ksh 4 per litre, as well as an additional Ksh 5 billion subsidy for diesel through the Fuel Stabilization Fund.

He notes that based on a monthly consumption of 202 million litres, this would translate to a reduction of about Ksh 24.75 per litre.

According to his projections, the combined measures would lower the price of super petrol to Ksh 187.38 per litre and diesel to Ksh 189.16 per litre.

“These amendments are short-term measures aimed at reducing the inflationary and sticky economic effects arising from the current high fuel prices,” he said.

The Kiharu lawmaker warned that failure to contain the fuel price spike would trigger severe inflationary pressures and hurt the economy “to the tune of hundreds of billions.”

“We spend a little more money in terms of waivers and subsidies, and then we protect the economy going forward in the medium and long term,” Nyoro said.

“Or we become laissez-faire and have a price to pay daily, economically speaking,” he warned.

His proposals follow the Energy and Petroleum Regulatory Authority (EPRA) announcement of an increase in pump prices for the period between May 15 and June 14, 2026.

In its latest pricing review announced on Thursday, EPRA indicated that the cost of Super Petrol and Diesel has increased by KSh. 16.65 and KSh. 46.29 per litre, respectively, while the price of Kerosene remained unchanged.

In Nairobi, Super Petrol, Diesel, and Kerosene will now retail at KSh.214.25, KSh. 242.92 and KSh. 152.78, effective midnight for the next 30 days.

Ndindi Nyoro Proposes Margins Cut, Fuel Subsidy Plan to Curb Inflation from High Fuel Prices
Energy Cabinet Secretary Opiyo Wandayi in a past event. PHOTO/X-Opiyo Wandayi