The Energy and Petroleum Regulatory Authority (EPRA) has announced a Ksh4.16 per unit tariff revision, effective September 2026. This change, detailed in an official Gazette Notice dated September 18, 2026, affects all meter readings taken during September. Residential households and business establishments will experience the impact on their upcoming power bills. The revision aims to cover operational expenses and shield power utilities against foreign currency fluctuations.
The tariff adjustments consist of three main components. The Fuel Energy Cost Charge is set at Ksh3.00 per kilowatt-hour (kWh) to cover expenses incurred by thermal power stations like Kipevu III and Rabai. The Foreign Exchange Fluctuation Adjustment is approximately Ksh1.14 per unit, designed to protect power utilities against foreign currency swings tied to Ksh1.32 billion in exchange costs. The Water Resources Authority (WRA) Levy is fixed at 1.48 cents per unit to compensate for water usage at major hydroelectric facilities.
The combined effect of these variables adds Ksh4.16 per unit, resulting in an additional Ksh416 in charges for a household consuming 100 units monthly. EPRA has also amended the 2023 tariff schedule to introduce new structural rules for private power producers and consumer bands. Customers generating their own renewable energy under net metering arrangements will now be credited for only 50 percent of the excess power they export to the national grid.
Unapproved energy feed-ins, classified as dumping, will result in the generator being billed at applicable base tariffs for the fed-in power. Domestic consumers have been structured into three usage categories based on their three-month consumption averages: up to 30 units, between 30 and 100 units, and between 100 and 15,000 units. This categorization aims to provide a more tailored approach to electricity pricing.
EPRA has also set dedicated tariffs for electric vehicle (EV) charging stations at Ksh16 per unit during peak hours and Ksh8 per unit during off-peak periods. This move is expected to encourage the adoption of electric vehicles in Kenya. The regulatory updates come as Kenya Power moves to moderate the integration of new solar and wind projects due to grid stability risks.
Variable renewable sources currently account for over 21 percent of Kenya's total grid capacity and supply 34 percent of peak daytime demand, causing fluctuations that require expensive thermal backup generation. To address this, Kenya Power is requiring future solar and wind installations to incorporate battery storage systems capable of providing three to four hours of reserve power.
Kenya Power is prioritizing baseload capacity expansion through geothermal and hydroelectric developments to ensure grid stability. The updated tariffs and regulations aim to balance the integration of renewable energy sources with the need for a stable and reliable power supply. The changes will have a significant impact on Kenya's energy sector and its efforts to provide affordable and sustainable electricity to its citizens.
Key points
- The revised tariffs add Ksh4.16 per unit, affecting residential and business electricity bills.
- The tariff adjustments include the Fuel Energy Cost Charge, Foreign Exchange Fluctuation Adjustment, and Water Resources Authority Levy.
- The updated regulations introduce new structural rules for private power producers and consumer bands, including net metering arrangements and EV charging station tariffs.
