Kenya's Fuel Fury: Ruto's Government Navigates VAT Cuts, IMF Tensions, and Protest Threats

Deputy President Kithure Kindiki has assured Kenyans that the government is actively rolling out additional measures to alleviate surging fuel prices, aiming to restore them to levels seen before the conflict between Iran and the United States. A key step already taken by the government to ease this burden on citizens is the reduction of Value Added Tax (VAT) on fuel from 16 per cent to 8 per cent. Kindiki, speaking in Emining, Baringo County, during a development tour, emphasized that global policy interventions, rather than street protests, are the basis for finding solutions to the current fuel challenges.
President William Ruto solidified this commitment by assenting to the Value Added Tax (Amendment) Bill, 2026, on Friday, April 17, 2026. This new law amends Section 6 of the VAT Act, empowering the Treasury Cabinet Secretary to vary VAT on petroleum products beyond the previous 25 per cent cap of the standard rate. The President stated that the prior cap was insufficient to cushion Kenyans from escalating fuel costs. The Amendment Bill was swiftly debated and passed by Members of Parliament in the National Assembly on Thursday, April 16, ensuring the legality of the Treasury's 50 per cent VAT cut. This revised 8 per cent VAT rate is set to apply for 90 days, with provisions for a further 90-day extension if the fuel crisis persists. Following this adjustment, a litre of super petrol is expected to retail at Sh197.60, and diesel at Sh196.63.
However, the government's actions have been met with opposition. Figures like Wiper leader Kalonzo Musyoka, former Deputy President Rigathi Gachagua, and DAP-K leader Eugene Wamalwa have threatened to mobilize nationwide mass protests. They accuse President William Ruto's administration of presiding over a failed economy. Rigathi Gachagua reiterated the opposition's firm stance during a rally in Nairobi's Kawangware slums, maintaining that their seven-day ultimatum for Ruto to reduce pump prices remains active.
In response, Deputy President Kindiki cautioned Kenyans against succumbing to incitement by leaders he described as lacking a clear agenda. He maintained that protesting and holding street demonstrations are not viable solutions to the prevailing global fuel challenges. Kindiki asserted that the William Ruto-led administration is preoccupied with delivering development projects and will not be sidetracked by the opposition's calls for protests. He specifically urged Kenyans not to be swayed by the opposition's politicization of fuel prices.
Adding another layer to the discourse, the International Monetary Fund (IMF) has issued a warning to Kenya against cutting taxes on fuel, presenting a fresh challenge to President William Ruto’s government's strategy.
Kindiki also took the opportunity to critique former Deputy President Rigathi Gachagua, challenging him to present his development track record from his time in power, rather than engaging in what Kindiki termed as 'making noise.' The Deputy President affirmed the government's unwavering focus on executing development projects and enhancing livelihoods, assuring that their track record would be presented to the populace when the next political season arrives. He concluded by stating, “Next year we are heading to the general election, let us meet at the ballot with a development track record that will be gauged by Kenyans.”
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