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The Tax Bill before Parliament would keep Value Added Tax on petroleum products at eight percent and rewrite ceramic tile excise to 5% of value or KSh300 per square metre. The Tax Laws (Amendment) Bill, 2026 — published in Kenya Gazette Supplement No. 236 (National Assembly Bills No. 65) on 28 September 2026 — amends the VAT Act and the Excise Duty Act. It is not law yet.
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Fuel VAT in the Tax Bill
On the face of the published Bill PDF on parliament.go.ke, the memorandum and VAT clauses provide for the rate of Value Added Tax on petroleum products at eight percent of taxable value. That figure matches the temporary eight percent structure businesses have been watching since earlier VAT amendments. Until the Bill is passed and assented to, the rates in force today continue to apply.
Ceramic tile excise: size, not weight
The Bill also amends the First Schedule to the Excise Duty Act for imported ceramic flags and paving, hearth or wall tiles (tariff 6907). The text shifts the measure from a weight basis to a size basis and states a rate of 5% of the excisable value or KSh300 per square metre. Importers and hardware distributors that price tiles by the square metre will need to remodel landed-cost sheets if the clause becomes law.
What happens next for the Tax Bill
The Bill was received by the National Assembly’s Director of Legal Services in early October 2026. It still has to clear the remaining parliamentary stages. Companies that disagree with a future assessment can use the routes in our KRA ADR guide. Multinationals watching the separate minimum top-up tax deadline should see our story on the 30 November MTT notice.
Frequently asked questions
Does the Tax Bill raise petrol VAT above 8%?
No. The published text provides for an eight percent VAT rate on petroleum products.
What is the proposed ceramic tile excise?
5% of the excisable value or KSh300 per square metre, moving away from a weight-based measure.
Is this law already?
No. It is a Bill in the National Assembly and takes effect only after passage and presidential assent.
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