Ndindi Nyoro@NdindiNyoro
KENYA MUST LOWER VAT ON FUEL AND REDUCE FUEL LEVY:
Fuel prices globally were higher in March of 2022 at around $100 Per Barell, reaching a peak over $116 Per Barell in May of 2022. Higher than the current global oil prices.
Yet, Petro was around Ksh 150 and diesel Ksh 131 at the peak in May. Even without a subsidy, it was still cheaper than now.
Even while global prices halved from a high of $116 Per barrel in 2022 to below $55 Per barrel in December 2025, Kenyans didn’t notice the drastic global price change at the pump.
The reason of high prices in Kenya includes the introduction of an extra 8% VAT in 2023 and an extra KSh 7 fuel levy in 2024. VAT is over Ksh 25 per liter. This is besides other excise taxes and levies.
More interesting is that the government has already taken a loan or collected the Ksh 7 in advance through illegal securitization. This amounts to Ksh 32 billion per year.
For non-oil-producing economies, their markets are price takers of the global prices; they are left with the tool of levies, taxes, or subsidies to deal with fuel prices. Taxes and levies account for around 50% of fuel prices in Kenya, among the highest in the World.
A time has now come for Kenya to remove the Ksh 7 in fuel levy added in 2024 and recede the 8% VAT on fuel.
The banks that participated in the illegal securitization should be made to pay for their greed. They either give a moratorium or laws must be changed.
The government must intervene. Consumers have done their bit by paying additional VAT and fuel levy when prices were coming down; now it is time for the government to reciprocate by removing the 8% additional VAT and Ksh 7 fuel levy. Our economy cannot afford to shoulder all these levies and taxes at this time in consideration of the global dynamics. Kenyans must be shielded. The economy must be supported.
It is unfathomable that fuel is cheaper in Uganda, yet their fuel requirements pass through Kenya. In Tanzania, Petro is below Ksh 155 in Kenyan shillings. Still cheaper in Rwanda.
We are African and Africa is our Business..