NAIROBI,Kenya May 20 -The National Assembly has initiated the review process for legislative proposals by Kiharu MP Ndindi Nyoro seeking to reduce fuel prices in the country.
In a letter dated May 19, 2026, the Office of the Clerk of the National Assembly confirmed receipt of Nyoro’s proposals and indicated that they had been forwarded to relevant parliamentary committees for consideration.
The communication, signed by Parliamentary Budget Office Director Martin Masinde on behalf of the Clerk of the National Assembly, stated that the proposed amendments would undergo scrutiny under Article 114 of the Constitution and the National Assembly Standing Orders.
“The proposals shall be processed in accordance with the provisions of Article 114 of the Constitution and the National Assembly Standing Orders,” the letter stated.
The Former House Budget Committee had proposed an urgent three-pronged intervention to bring fuel prices below Sh190 per litre after the Energy and Petroleum Regulatory Authority (EPRA) announced sharp increases in pump prices effective 15th May.
Under the latest monthly review published on Thursday, super petrol prices rose by Sh16.65 per litre while diesel jumped by Sh46.29, pushing retail prices in Nairobi to Sh214.25 for petrol and Sh242.92 for diesel.
Nyoro said the government should immediately reduce fuel distributors’, retailers’ and wholesalers’ margins by Sh4 per litre from the current average of about Sh22.
He also proposed scrapping the 8 per cent Value Added Tax (VAT) on fuel products that was reinstated under Legal Notice No. 70 of April 15, 2026.
“The second thing is that we must reduce our VAT further from the current 8 per cent to zero. In the short term, we must exempt fuel products from VAT,” he said.
EPRA had indicated that the latest prices factor in the VAT rate alongside inflation-adjusted excise duties and other fuel-related levies.
Nyoro further called for the abolition of the Sh7 Road Maintenance Levy increment introduced in 2024, saying the combined measures would lower super petrol prices to about Sh186 per litre and diesel to around Sh189.
The National Assembly further informed the lawmaker that the proposals had been transmitted to the relevant House committees, which would guide him on the next procedural steps.
As part of the review, Nyoro will be required to present the fiscal implications of his proposals before the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning.
According to Parliament, the committees will seek clarification on how the proposed measures could affect the approved 2025/2026 budget, the 2026/2027 budget estimates, and existing contractual obligations tied to proceeds from the Road Maintenance Levy Fund.
The reference to the Road Maintenance Levy Fund points to one of the key complexities surrounding efforts to lower pump prices.
The levy, charged on petroleum products, is a major source of financing for road construction and maintenance programmes, meaning any proposed reductions could carry significant implications for government revenue and infrastructure financing.
While details of the proposed amendments have not yet been made public, the move comes amid persistent public concern over the cost of fuel and its impact on transport, food prices and the broader cost of living following the latest fuel price review by EPRA.
Fuel prices remain a politically sensitive issue in the country because they directly influence inflation, household spending and the cost of doing business.
Parliament has now asked the Kiharu MP to avail himself for discussions with the Parliamentary Budget Office and the relevant committees as consideration of the proposals gets underway.
The outcome of the review could shape future debate on balancing consumer relief measures against government budgetary commitments and infrastructure financing needs.
The Kiharu MP warned that failure to contain the fuel price spike would trigger severe inflationary pressures and hurt the economy “to the tune of hundreds of billions.”
