Vivo Energy Tops Sh279bn Fuel Tax Contributions in Kenya

Vivo Energy emerged as the leading contributor to fuel-related taxes and levies in Kenya, paying Sh64.28 billion to the Kenya Revenue Authority (KRA) in the first 10 months of the 2026 fiscal year. This amount represents 23 percent of the total Sh278.6 billion collected from all oil marketers during the period.

The company's tax payments align with its market share, having sold 23.2 percent of the 4.27 billion litres of diesel, petrol, and dual-purpose kerosene retailed locally. Vivo Energy, which retails Shell-branded petroleum products, has held a dominant position since acquiring Shell’s downstream operations in Kenya in 2012.

Market Leaders and Tax Impact

Following Vivo Energy, TotalEnergies Marketing Kenya and Rubis Kenya ranked second and third in tax contributions, remitting Sh36.4 billion and Sh25.13 billion respectively. Together, these three firms accounted for 45.17 percent of the total fuel taxes and levies paid, reflecting their control of nearly half of Kenya’s fuel sales.

The total tax intake was affected by the government’s reduction of the Value Added Tax (VAT) on petroleum products from 16 percent to 8 percent in April 2026. This move aimed to cushion consumers against rising fuel prices driven by geopolitical tensions in the Middle East. KRA estimates that this VAT cut led to a Sh1.827 billion decrease in VAT collections for petrol and diesel in April alone. The reduced VAT rate was initially set to revert to 16 percent in July but has been extended to October 14.

Fuel Levies and Taxes

Kenya imposes multiple levies and taxes on fuel, including:

• Roads Maintenance Levy (Sh25 per litre of diesel and petrol)
• Excise duty
• Petroleum Development Levy (Sh5.40 per litre for diesel and petrol; Sh0.40 for kerosene)
• Petroleum Regulatory Levy
• Merchant Shipping Levy
• Import Declaration Fee
• Anti-adulteration Levy (Sh18 per litre of kerosene)
• Railway Development Levy

Oil marketers pay these charges upfront before clearing their fuel from the Kenya Pipeline Company storage system.

The fuel sector remains a significant contributor to VAT revenue for KRA, with Vivo Energy, TotalEnergies, and Rubis playing key roles in the market and tax collection landscape.