President Uhuru Kenyatta on Friday signed the Finance Bill 2018 after it was passed in parliament by the MPs.
In a tweet, Uhuru posted: "I give my commitment that I will ensure proper utilisation of public resources for a better Kenya. I will not relent on the war against Corruption."
He also assented to the Coast Guard Bill 2018 which marks an important milestone in the management and enforcement of laws in Kenya’s internal and territorial waters.
The Coast Guard Act 2018 establishes the Kenya Coast Guard Service which will be responsible for enforcing maritime security and safety, pollution control and sanitation measures as well as prosecution of offenders
The President received the Finance Bill after it was controversially passed by the lawmakers on Thursday.
Legislators approved the President's recommendations that lowered the fuel tax from 16 to 8 percent.
This sees petrol prices drop from Ksh127 to Ksh116 and diesel prices from Ksh115 to Ksh108.
The bill was passed after the MPs failed to raise the required 233 majority votes to shoot down President Kenyatta's proposals.
Uhuru's recommendations earned an easy stay given only 215 legislators were allegedly in parliament during the voting.
Thursday's Parliament session turned chaotic after a section of the lawmakers against the proposed bill chanted zero percent on petroleum products in a bid to shout down National Assembly Minority Leader John Mbadi who supported the tax proposals.
There was another temporary disruption to the proceedings after the leaders called for the exit of Majority Leader Aden Duale, moments after he had made his submissions in support of the President's tax proposal.
"The moment we pass this 8%, the ERC as the body mandated, will do a calculation on how much the 8% the President is proposing, will be translated into other sectors of the economy," remarked Duale.
The new law implements the cut on the government's expenditure and introduction of other austerity measures which will see less spending across all arms of the government.
Hospitality, domestic and foreign travel, seminars and training are some of the areas to face major cuts.
The Judiciary is set to benefit from the implementation of the new law that will see their funding increased in the effort to fight corruption.
The bill also effected the tax on telephone calls and data from 10 to 15 percent which will see a likely increase in the cost of phone calls and bundles.
