Effective July 1, Kenyans are bracing for higher prices at the pump following Parliament’s June 21 endorsement of the proposal to standard rate value-added tax (VAT) on fuel from the current eight percent to 16 percent.
On average, the price per litre of product is expected to go up by at least Sh10.62, driven by the change in VAT as well as the reduction in Import Declaration Fee from 3.5 percent to 2.5 percent and the reduction in Railway Development Levy from 2.5 percent to 1.5 percent.
