Kenyans are staring at the possibility of higher electricity costs after the government confirmed that power tariffs are under review following a sharp rise in fuel prices that has already pushed up transport and production expenses across the country. Authorities, however, say the expected adjustment will be controlled to avoid further strain on households already grappling with high living costs.
Energy Principal Secretary Alex Wachira told MPs on Wednesday that the review of electricity pricing is unavoidable due to recent shifts in fuel costs, especially diesel, which feeds into power generation. He said the government is taking measures to ensure consumers are protected from a steep increase.
“Regarding the issue of costs of energy, yes, in your bill there is a fuel energy charge, and I took my time to explain to you what we are doing as a state department and as a ministry to ensure the hike that you might see is marginal,” Wachira said.
“Diesel is the only area where we have had significant change and because of the spread-through cost across, the marginal costs that Kenyans are going to see on their power bills are marginal.”
He was responding to concerns raised in Parliament by Funyula MP Wilberforce Oundo and Aldai MP Marianne Kitany, who sought clarity on whether the recent fuel price surge would directly push up electricity bills. Lawmakers demanded transparency on how the fuel component in power tariffs is calculated.
“I just received an SMS here from a concerned Kenyan. The ordinary electricity bills have a matter of fuel component. When you look at the electricity bill, there is a fuel component. To what extent are Kenyans likely to be hit? Just tell them the truth and nothing else but the truth, and the truth shall set you free,” Oundo said.
Wachira said the government is shifting focus towards cheaper and cleaner energy sources such as hydro and geothermal power to reduce dependence on diesel and Heavy Fuel Oil. He added that these efforts are meant to stabilise electricity costs in the long term.
His remarks came shortly after the Energy and Petroleum Regulatory Authority announced a fresh review of fuel prices for the April–May cycle, which saw motorists hit with sharp increases across most regions.
“We have calculated the maximum retail prices of petroleum products which will be in force from April 15, 2026, to May 14, 2026,” EPRA said in a statement.
Under the first adjustment, which was announced on April 14, 2026, super petrol went up by Sh28.69 per litre, while diesel rose by Sh40.30 per litre. Kerosene remained unchanged. In Nairobi, super petrol now costs Sh206.97, diesel Sh206.84, and kerosene Sh152.78.
In Mombasa, prices were set at Sh203.69 for petrol, Sh203.56 for diesel, and Sh149.49 for kerosene. Kisumu recorded higher rates at Sh209.00 for petrol, Sh208.87 for diesel, and Sh154.81 for kerosene, while Nakuru and surrounding towns also saw elevated prices due to distribution costs.
The increases have sparked concern among MPs, who warned that any additional electricity costs would worsen pressure on families already struggling with rising food and fuel expenses.
During the session, legislators also raised allegations of irregularities in rural electrification projects, accusing some contractors of abandoning sites shortly after launch events.
“We are concerned because after launching the projects, the contractors disappear. They even dig the holes for the posts, for mounting the posts, then they disappear. And it is a real concern in Western Kenya, especially Busia, Vihiga and Siaya,” Teso South MP Mary Emase said.
“You go somewhere, when the President is visiting, you mobilise all trucks of REREC and all trucks of the agency to show the public that there is some work and then, as you take off in your choppers, the trucks also take off,” added Lugari MP Nabii Nabwera.
Wachira dismissed the claims, insisting that electrification projects are based on technical planning and approved budgets, not political influence. He assured lawmakers that the government remains committed to expanding access to electricity nationwide.
Business leaders have also warned that rising energy costs could hit manufacturing and increase prices of goods. Kenya Association of Manufacturers chief executive Tobias Alando said the fuel cost element in electricity pricing is likely to rise further.
“The fuel cost component in the cost of electricity is also expected to go up from the current Sh3.57 per kWh,” the KAM boss said in a statement.
He added; “The increase in fuel prices is expected to further drive up the cost of production for manufacturers, resulting in more pain for consumers who are already struggling to make ends meet.”
Kiharu MP Ndindi Nyoro blamed taxes for the rising fuel costs and pushed for a return to earlier tax levels.
“Fuel products must be VAT-exempt during the intervening period. The government must immediately revert the VAT to eight per cent as it was before 2023,” he said.
He also proposed cuts in fuel levy and VAT, alongside renewed subsidies, arguing that such changes could reduce pump prices by up to Sh27 per litre.
A lobby group, Green Kenya Congress, called for full accountability in subsidy use, saying funds should be redirected to essential development projects instead of being lost to inefficiencies.
“For too long, fuel subsidies drained billions from our national treasury, money that should be building hospitals in Turkana, roads in Kisumu, and schools in Meru. That era of financial irresponsibility must end.”
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