MPs have voted to suspend the introduction of 16 per cent tax on petroleum products by two more years.
This will effectively shield poor household from a spike in the cost of living starting Saturday.
MPs said the introduction of the value-added tax on petroleum products would at the touch of a button cause a rally in the cost of commodities and transport.
The amendment now means that the tax will take effect on September 1, 2020.
This is the third time the implementation of the tax is being suspended, having been deferred twice in the last two financial years.
Nairobi motorists would have paid a record Sh131.93 per litre of petrol or about Sh18.20 more beginning September 1.