The Star, Kenya·3 min read·medium

[PHOTOS] Ruto signs two tax laws on fuel VAT and construction costs

[PHOTOS] Ruto signs two tax laws on fuel VAT and construction costs
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Kenyan President William Ruto has signed two new tax laws aimed at reducing the cost of living and reforming the Kenya Revenue Authority. The legislation includes a temporary reduction in VAT on petroleum products and changes to excise duty calculations for construction materials.

Why it matters

These fiscal policy changes directly impact the cost of fuel and housing construction in Kenya, reflecting government efforts to mitigate economic pressures.

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President Wiliam Ruto, alongside other senior government officials during signing of the Tax Laws (Amendment) Bill and the Kenya Revenue Authority (Amendment) Bill 2026 into law at Eldoret State Lodge, Uasin-Gishu County, 16th October 2026/PCS .

President William Ruto has signed two tax laws introducing changes to Value Added Tax (VAT) on petroleum products, excise duty on construction materials and the composition of the Kenya Revenue Authority (KRA) board.

The President assented to the Tax Laws (Amendment) Bill, 2026, and the KRA (Amendment) Bill, 2026, at Eldoret State Lodge on Friday, October 16.

The Tax Laws (Amendment) Act provides for a reduced VAT rate of eight per cent on petroleum products, down from 16 per cent, in a move intended to cushion Kenyans against rising fuel prices.

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