Kenyans face higher electricity bills in October 2026 after the Energy and Petroleum Regulatory Authority (EPRA) introduced additional charges, including a fuel energy cost of Ksh3.22 per kilowatt-hour (kWh).
The new charges also comprise a water resource management levy of Ksh0.0134 per kWh and a foreign exchange adjustment of Ksh0.87 per kWh, bringing the combined cost to Ksh4.10 for every unit of electricity consumed.
“Pursuant to the 2023 Schedule of Tariffs, all electricity prices will attract an additional Water Resource Management Authority levy of 1.34 cents per kWh for meter readings taken in October 2026," EPRA said.
In a notice dated Friday, October 9, the regulator explained that the foreign exchange adjustment would apply to meter readings for September 2026, while the fuel energy cost and water resource management levy would be charged on October readings.
The additional Ksh4.10 per unit will increase electricity bills for households and businesses, with the actual amount payable depending on their monthly power consumption.
Why Electricity Bills Are Increasing
The fuel energy cost covers expenses incurred in generating electricity using thermal power plants and importing power from neighbouring countries.
The latest adjustment reflects fuel-related expenses associated with electricity generation, including the cost of operating diesel-powered power stations.
Meanwhile, the water resource management levy is intended to cover expenses associated with managing water resources used in hydropower generation.
Under the applicable tariff framework, electricity generated by hydropower plants with an installed capacity of at least one megawatt attracts a levy of five cents per kWh, with the charges passed on to consumers in accordance with the relevant tariff rules.
EPRA disclosed that Kenya purchased approximately 304.82 million kWh of electricity from hydropower plants with capacities of at least one megawatt in September 2026.
The facilities included Gitaru, Kamburu, Kiambere, Kindaruma, Masinga, Tana and Turkwel, alongside other sources supplying electricity to the national grid.
How the Forex Adjustment Affects Consumers
Electricity consumers will also pay a foreign exchange adjustment of Ksh0.87 per kWh, applicable to meter readings taken in September 2026.
The adjustment accounts for exchange-rate fluctuations affecting the cost of generating and supplying electricity.
This is because many power purchase agreements are denominated in foreign currencies, particularly the United States dollar, exposing electricity suppliers to fluctuations in the exchange rate.
When the shilling weakens against foreign currencies, the cost of meeting dollar-denominated electricity expenses can rise, prompting adjustments to the charges passed on to consumers.
These costs are incorporated into electricity bills and affect the amount households and businesses pay for power.
Although the individual levies and adjustments may appear relatively small, their combined effect increases the cost of electricity for consumers across the country.
