Inside senators’ plan to ease pain at the pump

A pump attendant fuels a customer's vehicle at the Rubis Koinange Service Station in Nairobi on Tuesday, July 14, 2026.

Photo credit: Dennis Onsongo | Nation Media Group

A parliamentary committee has proposed a reduction of the fuel pricing components subject to Value Added Tax (VAT) in a bid to help lower pump prices, especially whenever global costs of refined fuel skyrocket.

The Senate committee on energy says VAT should only be charged on landed costs to help reduce pump prices.

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Note: The results are not exact but very close to the actual.