President William Ruto has signed two major tax laws that will affect every Kenyan.

The President assented to the Tax Laws (Amendment) Bill 2026 and the KRA Amendment Bill at Eldoret State Lodge in Uasin Gishu on Friday, October 16, 2026.

What has changed?

1. Fuel VAT stays low: The VAT on petrol, diesel and kerosene will remain at 8% instead of going back to 16%. This is for the next 90 days. If the crisis in the Middle East continues, it can be extended for another 90 days.
2. Cheaper construction: Excise duty on tiles, sanitary ware and glass products has been reduced to make building houses cheaper.
3. KRA reforms: The new law changes how KRA is run to improve tax collection without adding new taxes.

This comes just days after fuel prices shot up. On Tuesday October 14, EPRA increased petrol prices by up to 6.59 shillings per litre due to rising global oil prices.

What next?

Kenyans are waiting to see if EPRA will review fuel prices downwards in the next price review after this new law.