Kenyans are set to pay more for electricity after the Energy and Petroleum Regulatory Authority (EPRA) announced three tariff adjustments totalling Ksh4.70 per kilowatt-hour (kWh) for meter readings taken in August 2026.
In Gazette Notices dated Friday, August 14, EPRA introduced a Fuel Energy Cost Charge of Ksh3.51 per kWh, a Foreign Exchange Fluctuation Adjustment of Ksh1.1777 per kWh, and a Water Resource Management Authority (WRMA) levy of Ksh0.015 per kWh. Combined, the three charges amount to Ksh4.7027 per kWh for August meter readings.
EPRA attributed the increase, particularly the higher fuel charge, to electricity generated and purchased from various power plants in July.
The regulator said the figures used to calculate the fuel charge covered electricity generated from diesel, geothermal, thermal and other power stations, alongside power imports.
"PURSUANT to Clause 1 of Part III of the Schedule of Tariffs 2023, [notice is given that all Prices for Electrical Energy specified in Part II of the said Schedule] will be liable to a Fuel Energy Cost Charge of Plus 351 Kenya cents per kWh for all meter readings to be taken in August 2026," read one of the notices.
According to EPRA's schedule, some of the highest fuel costs were recorded at isolated thermal power stations. North Horr recorded Ksh396.12 per kWh, followed by Rhamu at Ksh363.18 and Baragoi at Ksh346.75.
Consumers will also face a Ksh1.17 per kWh foreign exchange fluctuation adjustment. EPRA linked the charge to exchange-related costs incurred by companies across the electricity supply chain.
The regulator reported foreign exchange gains and losses of approximately Ksh1.353 billion involving KenGen, Kenya Power and Independent Power Producers.
The August electricity costs were further affected by the hydropower levy, with consumers required to pay an additional Ksh0.015 per kWh under the WRMA levy.
EPRA clarified that the three charges are individual components of the electricity tariff and should not be interpreted as the full amount consumers pay for each unit. Electricity bills also include other approved tariff components, taxes and levies.
The announcement comes days after Kenya Power warned that electricity costs could rise amid changes in the country's power generation mix.
The company called for a careful approach to integrating variable renewable energy (VRE) sources into the national grid, warning that the rapid expansion of wind and solar power could affect grid stability and increase costs.
Kenya Power noted that the intermittent nature of wind and solar generation makes it harder to maintain stable frequency and voltage, particularly when power output changes sharply.
The company consequently urged policymakers to prioritise grid stability and factor in the additional costs associated with supporting variable renewable generation when approving new power projects.
