Brace for high pump prices: Kenya's shrinking subsidy budget forces 90-day tax relief extension

Kenya is extending an eight per cent VAT on diesel, petrol, and kerosene by 90 days to mid-December 2026 to buffer consumers from fuel price hikes driven by the re-escalation of the US-Iran conflict and rising global Brent crude prices. The subsidy budget is nearly depleted, forcing reliance on tax relief measures that cost the government significant VAT revenue.

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