Kenya's fuel prices soar as taxes account for 40% of cost per litre

Taxes on fuel in Kenya are among the highest in Africa after the government recently doubled value-added tax (VAT) to 16%.

Taxes account for 40 percent of the cost per litre of fuel in the country, Business Daily newspaper reported, compared to 14 percent in Illinois State, which has the highest 

fuel taxation in the US and 30% in South Africa.

The East African country already imposes seven levies and two taxes on fuel.  

A litre of super petrol and diesel jumped to 195.53 shillings ($1.38) and 179.67 shillings, respectively, in Nairobi following the imposition of the new VAT rate.

Kenya has the costliest super petrol in the East African region after the new VAT rate, followed by Uganda, Rwanda and Tanzania.

Elsewhere in Africa, Uganda imposes 26 percent taxes on a litre of fuel, while Ethiopia has no fuel tax, the newspaper said.

(Editing by Seban Scaria  seban.scaria@lseg.com)