Government extends fuel VAT cut, adds subsidy

The government has extended the 8 per cent VAT reduction on petroleum products until October and will inject an additional KSh945 million subsidy to keep fuel prices stable. Speaking ahead of the latest fuel price review, Energy Cabinet Secretary Opiyo Wandayi said the measures are aimed at shielding consumers and businesses from global market volatility while ensuring adequate fuel supplies. The extension follows the government's decision in April to reduce VAT on petroleum products from 16 to 8 per cent due to Middle East war-related supply disruptions.