One of the reasons why diesel prices are high in Kenya is VAT on levies.
The Energy Petroleum Regulatory Authority (EPRA) monthly price schedule for the period 15th February 2025 to 14th March 2025 shows that levies charged on landed petroleum products was Sh56.64 for super petrol Sh46.31 for automotive gas oil (AGO) and Sh34.4 for kerosene.
VAT levied on the levies was Sh9.06 for super petrol, Sh7.41 for AGO and Sh5.5 for Kerosene.
These levies are taxes and therefore should not be subjected to VAT.
To reduce the cost of electricity to industries and other commercial enterprises, the Ministry of Energy introduced
time of use (ToU) tariff during off-peak hours. A review of ToU is essential to reduce curtailed which has been on an
upward trend.
