President William Ruto has signed two amendment laws extending tax relief on petroleum products and introducing changes aimed at lowering construction costs and improving revenue collection.

The President assented to the Tax Laws (Amendment) Bill, 2026, and the Kenya Revenue Authority (Amendment) Bill, 2026, at Eldoret State Lodge in Uasin Gishu County.

The move extends the reduction of Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent for another 90 days, offering temporary relief to motorists, businesses and households facing high fuel prices.

The extension is expected to cushion Kenyans against the cost of fuel, which influences transport fares, food prices and the cost of essential goods and services.

Ruto Signs Tax Laws, Extends 8% VAT on Fuel for 90 More Days

Ruto’s New Tax Laws Target Construction Costs

The Tax Laws (Amendment) Act also introduces changes to excise duty on tiles, sanitary ware and glass products.

The reforms are intended to lower construction costs, support the housing industry and encourage job creation.

The changes could provide relief to developers and households undertaking construction projects, although the actual impact will depend on how the revised duties affect market prices.

The measures also come as the government continues to pursue its affordable housing agenda and efforts to expand economic opportunities in the construction sector.

KRA Amendment Targets Revenue Collection

The Kenya Revenue Authority (Amendment) Act introduces reforms intended to strengthen the tax agency’s governance and financing.

The changes seek to improve operational efficiency and enhance revenue collection without introducing additional taxes.

The government expects the reforms to strengthen KRA’s capacity to collect revenue and support public financing.

What the New Laws Mean for Kenyans

The extension of the reduced VAT rate offers temporary relief from fuel taxation, while the changes affecting construction materials target costs in the housing sector.

However, the reduction in VAT does not automatically guarantee lower pump prices, as the final cost of fuel is also affected by international oil prices, exchange rates and other components of the pricing structure.

The effectiveness of the new measures will ultimately depend on their impact on fuel costs, construction expenses and the efficiency of government revenue collection.

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Ruto Signs Tax Laws, Extends 8% VAT on Fuel for 90 More Days