President William Ruto’s abrupt reversal order on value-added tax (VAT) on fuel, triggered an overnight scramble among oil marketers seeking to reconfigure their systems, amid concerns about unpredictable policy shifts in the Kenyan business space.
The abrupt decision to halve VAT on petroleum products from 16 percent to 8 percent—announced late Wednesday and effected at midnight—offered immediate relief to motorists, but left firms grappling with operational and legal complexities after two days of shifting tax signals.