NAIROBI, Kenya Apr 17 – President William Ruto has announced a raft of emergency measures aimed at shielding Kenyans from rising living costs triggered by the ongoing conflict in the Middle East, including a temporary reduction of Value Added Tax (VAT) on fuel.Speaking after assenting to the Value Added Tax (Amendment) Bill, 2026 at State House Nairobi, the President said the government would “do everything possible” to cushion citizens from the economic shocks linked to surging global oil prices.Under the new law, VAT on fuel has been reduced by half—from 16 per cent to 8 per cent for an initial period of 90 days, in a move the government says is intended to ease pressure on households and businesses.“We have taken this urgent and necessary step because a surge in the cost of fuel has a ripple effect on consumer goods and services,” President Ruto said.The Head of State noted that the temporary tax relief could be extended if volatility in global oil markets persists due to the Gulf conflict, with provisions already included in the legislation to allow for such an extension.The President also praised the National Assembly of Kenya for expediting the process, noting that lawmakers passed the Bill in a record one day to facilitate swift government intervention.The VAT reduction comes amid mounting concern over the rising cost of living, with fuel prices playing a central role in driving inflation across transport, food, and other essential commodities.Ruto said the government remains committed to stabilising the economy and protecting vulnerable households as external shocks continue to impact global and domestic markets.President Ruto signed the VAT (Amendment) Act 2026 into law, temporarily reducing Value Added Tax on fuel from 16 percent to 8 percent for a period of 90 days in a move aimed at easing pressure on consumers and stabilising fuel prices.The new measures are expected to provide short-term relief to motorists, transport operators, and businesses heavily reliant on petroleum products.The reduction comes at a time when fuel prices have remained a major concern for households and the transport sector, with fluctuations in global oil markets continuing to impact local pump prices.According to the amendment, the 50 percent cut in VAT is intended as a temporary fiscal intervention while the government reviews broader measures to cushion Kenyans from external shocks affecting energy costs.While signing the Bill into law, President Ruto reiterated the government’s commitment to stabilising fuel prices through a mix of tax adjustments, subsidies, and procurement reforms in the petroleum sector.The 90-day window is expected to allow policymakers time to assess global oil trends and determine whether further adjustments will be necessary once the period lapses.Stakeholders in the transport and logistics sector are expected to welcome the move, which could translate into reduced operational costs and potentially lower commodity prices if sustained across supply chains.