Fuel Prices Drop After VAT Cut, Offering Relief to Motorists

April 16, 2026 — Motorists across the country can breathe a sigh of relief after the Energy and Petroleum Regulatory Authority announced a reduction in fuel prices following a fresh tax adjustment.

In a statement issued on April 15, EPRA confirms that Treasury Cabinet Secretary John Mbadi lowered Value Added Tax (VAT) on petroleum products from 13 per cent to 8 per cent, prompting a recalculation of fuel prices for the period between April 16 and May 14, 2026.

As a result, the price of Super Petrol in Nairobi drops by KSh 9.37 per litre, while Diesel decreases by KSh 10.21 per litre. Kerosene prices remain unchanged during this cycle.

Following the adjustment, Super Petrol, Diesel, and Kerosene in Nairobi will now retail at KSh 197.60, KSh 196.63, and KSh 152.78 per litre, respectively.

EPRA explains that although kerosene prices have not been reduced, the subsidy on the product has been lowered to KSh 96.56 per litre, down from KSh 108.10.

In Mombasa, Super Petrol and Diesel will retail at KSh 194.32 and KSh 193.35 per litre, while Kerosene remains at KSh 149.49.

In Nakuru and Kisumu, Super Petrol will retail at KSh 196.66 and KSh 197.48 respectively, while Diesel will cost KSh 196.04 and KSh 196.85 in the two cities.

The latest reduction is expected to ease pressure on households and businesses that had begun grappling with rising fuel costs, with possible effects on transport fares and commodity prices in the coming weeks.

The move comes just a day after EPRA announced a sharp increase in fuel prices, where Super Petrol and Diesel had risen by KSh 28.69 and KSh 40.30 per litre, respectively, pushing Nairobi pump prices above KSh 206 per litre.

At the time, the regulator attributes the hike to increased landed costs of petroleum products in the international market.

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