The cost of electricity for Kenyans is set to rise after the Energy and Petroleum Regulatory Authority (EPRA) released updates to key tariff charges that determine monthly bills.
The latest revisions affect the fuel energy cost, the foreign exchange adjustment, and the Water Resource Management Authority levy, which together influence the final amount paid by households and businesses.
The tariff adjustments, gazetted on Friday, February 13, come as part of the routine review process, but the changes carry tangible effects for consumers amid already high living expenses.
The foreign exchange adjustment saw the largest increase, with EPRA setting the charge at 120.61 cents per kilowatt hour, or Ksh1.2061 per unit of electricity.
“This charge reflects the dependence of Kenya’s power sector on foreign currency, as some electricity producers are paid in dollars, and fuel for thermal plants is imported,” EPRA stated.
Published figures show that foreign exchange losses in the sector totaled about Ksh1.31 billion, a cost that will now be passed on to electricity users under the new tariff.
The Fuel Energy Cost Charge was also revised, now standing at Sh3.10 per kilowatt hour. This component covers the cost of operating thermal power stations, which are deployed when demand exceeds the capacity of geothermal and hydropower plants.
Thermal plants rely on diesel or heavy fuel oil, commodities highly sensitive to global price fluctuations, meaning the cost often rises for consumers when thermal generation is required.
The third change concerns the Water Resource Management Authority levy, now set at 1.21 cents per kilowatt hour, or Sh0.0121 per unit.
This levy is collected from electricity users to fund the management of water resources used in hydropower production, ensuring sustainable supply for the country’s power system.
Taken together, the three adjustments could add substantial amounts to electricity bills. For example, a household consuming 300 units could see their costs increase by nearly Sh1,300 from the combined effect of foreign exchange and fuel charges alone, even before other fees and levies are applied.
