The government through Treasury has moved in to cushion Kenyans against high fuel prices thanks to a proposal to reduce the fuel levy.
In the latest push, Treasury is seeking to reduce the Road Annuity Fund from Ksh 3 to Ksh 1.5 per litre, an amount that was being used to finance road projects in the country.
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The proposal which is contained in the Road Maintenance Levy Fund Amendment Bill 2026 is before Parliament and once it sails through, Kenyans will be cushioned against the soaring fuel prices which have been attributed to the tension between Iran, Israel and the US.
Initially, the government moved in by reducing the VAT imposed on fuel from 13 percent to 8 percent, a move that lowered the price of Diesel by Ksh 10 with immediate effect.
