The Kenyan government has said that it will disclose a new fuel formula. This comes after the Kenyan government defied a court order, hindering new taxes by increasing the VAT on petroleum products. This leaves Kenyans with startlingly high petrol and diesel prices.

According to, a press release by Kenya’s Energy and Petroleum Regulatory Authority (EPRA) stated that, “pursuant to the finance act, 2023, VAT on super petrol, diesel and kerosene has been revised from 8% to 16% effective 1st July 2023.”

This caused a price spike from Ksh 182.04 to Ksh 195.53 for petrol and diesel prices rose from Ksh 167.28 to Ksh 179.67.

Fuel prices are presently higher than they have ever been in 12 years, despite the 2023 Finance Act that required a decrease in the Import Declaration Fee (IDF) and Railway Development Levy (RDL) to alleviate the effects of the increased VAT.

EPRA chose to maintain the IDF and RDL at their previous rates, resulting in excessive payments for fuel and the imposition of unauthorized levies.

These developments have undermined the government’s efforts to alleviate inflationary pressures and stabilise the economy. According to Africa Business Insider, Central Bank of Kenya may be compelled to adopt a tight monetary policy stance to address these concerns.

However, there is hope on the horizon for Kenyans. Policy makers have recently called for a review of the pricing formula to lower fuel prices. The Finance and National Planning Committee directed the Petroleum ministry and the Energy and Petroleum Regulatory (Epra) to ensure that every part of the formula is accounted for, according to media reports.

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