The Energy and Petroleum Regulatory Authority (EPRA) has announced a pass-through increase of approximately KSh 4.10 per kilowatt-hour (kWh) for Kenyan electricity consumers, effective October 2026. This increase is a result of three separate Gazette Notices published on October 9, 2026, which outline adjustments to the Fuel Energy Cost Charge, Foreign Exchange Fluctuation Adjustment, and the Water Resource Management Authority (WRMA) Levy. These changes will affect meter readings taken during September and October 2026.
The largest component of the increase comes from the Fuel Energy Cost Charge, which adds 322 cents per kWh to consumer bills for October 2026 meter readings. This charge reflects variations in fuel prices recorded in August 2026, as well as fuel displacement costs. Thermal power stations, including the Kipevu III Diesel Plant, Rabai Diesel, Triumph Power, and several heavy fuel oil and diesel-powered facilities across Kenya, contributed to the operational costs that underpin this figure.
A foreign exchange fluctuation adjustment of 87 cents per kWh will apply to September 2026 meter readings. This mechanism exists to shield power producers from losses arising from currency movements. According to EPRA's data, the sector recorded a combined foreign exchange loss of KSh 987,557,779.72, spread across KenGen, Kenya Power (KPLC), and Independent Power Producers (IPPs). IPPs bore the heaviest burden, accounting for losses exceeding KSh 825 million.
The third adjustment, the WRMA Levy, adds 1.34 cents per kWh for October 2026 readings. This levy applies specifically to energy sourced from hydropower plants with a generation capacity of at least 1 megawatt. Hydropower facilities, including Gitaru, Kamburu, Kiambere, and Kindaruma, collectively generated 304,821,274 kWh in September 2026. The approved WRMA levy rate for these plants is 5.00 Kenya cents per kWh, though only a portion of that rate is being passed on to consumers under this specific adjustment.
EPRA's data shows that total electricity units generated and purchased in September 2026, excluding exports, reached 1,358,089,407 kWh. Together, the three charges mean consumers will pay an additional KSh 4.10 for every unit of electricity used in the upcoming billing cycle, before factoring in the base tariff, value-added tax, or other fixed charges. This increase is expected to add strain to household budgets and raise operating costs for manufacturers across Kenya.
The increases are largely shaped by global fuel price trends and sustained foreign exchange pressures. Kenya's electricity consumption in the financial year ending June 2026 saw the Nairobi region lead in both share and growth across all eight regions. Although South Nyanza used the least electricity, consumption there rose fastest, climbing 17.93% after a major transmission line improved supply.
The EPRA Director-General, Edward M. Kinyua, signed off on the adjustments. The authority's data and reports indicate that these changes aim to reflect the current market conditions and ensure the sustainability of the energy sector in Kenya. As the country navigates these changes, consumers and stakeholders will be watching closely for the impact on the economy and daily life.
Key points
- The EPRA has announced a pass-through increase of approximately KSh 4.10 per kilowatt-hour (kWh) for Kenyan electricity consumers, effective October 2026.
- The increase is driven by a 322-cent hike in the Fuel Energy Cost Charge, an 87-cent adjustment for foreign exchange fluctuations, and a 1.34-cent increase in the WRMA Levy.
- The changes are expected to add strain to household budgets and raise operating costs for manufacturers across Kenya.
