Fuel Prices & VAT, What’s Changing and How It Affects You

12/06/2025

The Kenyan government is proposing new changes to Value Added Tax (VAT) and excise duties. They are likely to hit your wallet hard. Among the most talked-about changes is a potential increase in fuel prices, a move that has sparked concern among everyday citizens, business owners, and transport service providers alike.

What’s in the Proposal?

The new Finance Bill includes proposals to:

  • Increase VAT on petroleum products
  • Adjust excise duties on fuel and other essential goods
  • Introduce or revise taxes that could affect transport, food production, and manufacturing costs

These changes come at a time when the cost of living is already high for many Kenyans, with ripple effects expected across key sectors of the economy.

Why Does Fuel Matter?

Fuel prices are a key driver of inflation. When fuel costs go up, so does:

  • Public transport fares
  • The price of goods and services (due to higher delivery costs)
  • Electricity bills (due to increased generation costs)

That means you may feel the pinch not just at the petrol station, but at the supermarket and even in your electricity bill.

The Bigger Picture

While the government argues that these taxes are necessary for revenue generation and national development projects, many Kenyans feel the burden is falling too heavily on the average citizen. Critics say more transparency and accountability are needed before more taxes are introduced.

What Do You Think?

We want to hear from you!

Do you support the proposed increases in VAT and excise duties, especially on fuel?

🔗 [Take Our Poll Here ]

Your voice matters. Let us start the conversation, demand transparency, and shape a future where development doesn’t come at the cost of everyday survival.