EXPLAINED: How Fuel Prices Will Reduce by Ksh 54 if Parliament Intervenes
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Fuel prices reduction by Ksh 54 could happen if Parliament approves new changes to fuel taxes and levies affecting super petrol, diesel and kerosene.
The plan aims to lower the cost of living by reducing key charges that make fuel expensive in Kenya.
To kick off the process, Kiharu MP Hon. Ndindi Nyoro has officially submitted proposals to Parliament seeking changes in how fuel is taxed.
He wants lawmakers to reduce certain levies and remove tax on petroleum products.
“I hereby give formal notice of my intention to initiate legislative amendments aimed at reducing the retail prices of super petrol, diesel and kerosene in Kenya,” Nyoro stated in his letter.
He explained that the changes focus on two main areas: lowering the Road Maintenance Levy Fund and removing VAT on fuel products.
If approved, these steps would directly reduce fuel prices at the pump.
Parliament has now received the proposal and started the process of reviewing it before any debate begins.
Also Read: MP Counts Losses After Ksh 20M Truck Torched During Fuel Hike Protests in Naivasha
Fuel Prices Reduction by Ksh 54: Key Tax Changes Proposed
The proposal outlines two major changes meant to lower fuel costs:
- First, it seeks to reduce the Road Maintenance Levy from Ksh 25 to Ksh 18 per litre by removing a 2024 increase
- Second, it plans to remove VAT on petroleum products, making fuel tax-free under the VAT Act
Together, these changes could lower fuel prices by up to Ksh 54 per litre, depending on how the tax cuts are passed on to consumers.
The Office of the Clerk of the National Assembly has confirmed receipt of the proposal and explained the next steps.
“The proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders;” the office stated.
Also Read: Nyoro Pushes to Recall Parliament Over Fuel Prices
Committee Review on Reduction Proposals
Parliament has now forwarded the proposal to key committees for review.
As a result, the Budget and Appropriations Committee and the Finance and National Planning Committee will study its impact. They will look at how the changes affect:
- The current 2025/2026 budget
- The proposed 2026/2027 budget
- Money already tied to the Road Maintenance Levy Fund
In addition, the Parliamentary Budget Office will guide lawmakers on the financial effects.
After this review, Parliament will decide whether to move the proposal forward for debate.
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Kiharu MP Ndindi Nyoro addressing the media in his office on April 15, 2026. /SCREENGRAB
