MP Amisi to State: Cut VAT on fuel from 16% to 8% to cusion Kenyans

Saboti MP Caleb Amisi / HANDOUT

Saboti MP Caleb Amisi has called on the government to reduce value-added tax (VAT) on fuel from 16 per cent to 8 per cent.

The legislator warned that Kenyans are facing an imminent fuel crisis driven by geopolitical tensions.

He said there is an anticipated impact of the Iran–U.S. conflict on global oil supply and that the government must move swiftly to cushion citizens from rising fuel costs.

“We would have thought that the government by now would have announced a reduction in the VAT, if not total abolition of 16 per cent VAT, at least a reduction back to 8 per cent,” the MP said.

He argued that lowering the tax would ease pressure on households by increasing disposable income at a time when fuel prices are expected to rise.

The Saboti MP warned that Kenya’s dependence on imported fuel makes it particularly vulnerable to external shocks, stressing that the country cannot insulate itself from global market disruptions.

“This will allow Kenyans to have disposable income to be able to cushion them through the crisis of fuel, because it is imminent." Kenya does not exist in a vacuum. Kenya exists among the community of nations. We are interconnected globally. We are not a fuel- or oil-endowed economy. We depend on other economies,” he said.

He added that the looming crisis is predictable and should not catch policymakers off guard, urging the government to provide a clear response strategy.

“It is not rocket science that we are going to have an imminent fuel crisis because of Iran and other global tensions. It is not something that Kenyans can wait and see,” he said.

The MP criticised what he described as a lack of preparedness, noting that unlike sudden emergencies such as the COVID-19 pandemic, the current situation can be anticipated and mitigated.

“This is not COVID-19 that came as a pandemic, as an emergency. This is something foreseeable, and the Kenyan government must address it and give Kenyans a proper plan on how they are going to navigate this period of fuel crisis,” Amisi added.

He said that swift tax adjustments and policy clarity would be critical in shielding Kenyans from the full impact of the expected surge in fuel prices.

Meanwhile, Energy Cabinet Secretary Opiyo Wandayi moved to calm public anxiety following a string of resignations and a brewing controversy in the petroleum sector.

In a statement, the CS said fuel supplies remain stable and that the government has taken steps to protect consumers from potential losses. Wandayi acknowledged the “recent developments” within the Ministry of Energy and Petroleum and its agencies.

He cited the exit of several senior officials following the oil import saga but maintained that the situation is firmly under control. He revealed that the government halted the delivery of a second fuel cargo after new information emerged about an earlier shipment now under investigation.

The move, the CS said, was aimed at safeguarding public interest and preventing a repeat of questionable transactions.

“We have sufficient stocks of petroleum products to meet current demand,” Wandayi said.