nairobikenya plans to double the valueadded tax on fuel to 16 the countrys finance minister njuguna ndungu said thursday petroleum products have received preferential tax treatment gradually transitioning from exempt status in 201318 to 8 from 2019 mr ndungu told parliament when presenting the 202324 budget estimates the continued practice by government to subsidize the cost of fuel by levying a preferential rate of 8 distorts the market yet the economy should be operating on the principles of demand and supply he said at least a dozen legislators from the opposition party staged a walkout before the presentation claiming that a raft of taxes proposed in the budget particularly the fuel tax were punitive to ordinary kenyans already enduring high costs of living kenya relies heavily on petroleum product imports to meet its energy demands kenyas oil production which was expected to start last year with an output of up to 100000 barrels a day from oil fields in the northern part of the country has been delayed as tullow oil and partners are still negotiating with a potential new partner tullow said in november