KRA Reveals Ksh 9.1B Tax Revenue Loss After Halving VAT on Fuel to 8% - Kenyans.co.ke

The Kenya Revenue Authority (KRA) lost Ksh9.1 billion in tax revenue between April and May 2026 after cutting VAT on fuel from 16% to 8% to cushion consumers from rising global fuel prices. KRA Commissioner Dr. Lilian Nyawanda disclosed the figures before the Senate Energy Committee on June 4, 2026. Additionally, a fuel consignment from the vessel MT PALOMA was redirected out of Kenya, and the Ksh5.1 billion paid by Oil Marketing Companies on that consignment will be transferred to future imports to partially offset the loss.