By Lilian Mutua

Fuel prices in Kenya have taken a sharp turn in the latest review, reflecting the pressure of rising global oil costs. Initial adjustments saw pump prices surge past KSh 206 per litre for both petrol and diesel, triggering concern among motorists and businesses. However, in a swift response, the government revised the Value Added Tax from 13% to 8%, leading to a downward adjustment of the prices.

Despite this intervention, the revised rates, now at KSh 197.60 for petrol and KSh 196.63 for diesel in Nairobi, only offer partial relief. The reduction eases the immediate burden but does not fully offset the earlier spike, meaning consumers are still paying significantly more at the pump.

The latest developments highlight the continued vulnerability of local fuel prices to global market forces, with the VAT cut serving more as a cushion than a solution.