Energy Ministry cuts electricity costs by Sh0.2685 per kWh from June 2026

The Ministry of Energy and Petroleum has assured manufacturers of a stable and reliable energy supply, announcing lower electricity costs and promising further reductions in diesel prices.

Following consultations with industry leaders, the government said it remains focused on affordability, energy security, and supporting business growth through policies aimed at lowering production costs and protecting jobs.

In a statement issued on Wednesday, Energy and Petroleum Cabinet Secretary Opiyo Wandayi explained that the government remains focused on protecting consumers, supporting productive sectors and maintaining the stability required for continued economic growth despite uncertainties in global energy markets.

The discussions, held with stakeholders from the Kenya Association of Manufacturers, centred on three key areas: adequacy of energy supply, reliability and quality of electricity, and affordability of energy.

“Continued consultation and engagement has been key to us. Our deliberations today with industry stakeholders under the Kenya Association of Manufacturers focused on three key priorities: adequacy of energy supply, reliability and quality of electricity, and affordability of energy. We believe that the best solutions are achieved through partnership,” the statement added.

The ministry noted that sustained engagement with industry players forms part of a broader effort to ensure the long-term sustainability of operations across the energy sector while supporting business growth and preserving jobs.

Energy officials acknowledged that energy costs remain a major factor affecting competitiveness, investment decisions, and livelihoods.

As a result, the government is committed to maintaining a stable and predictable environment that supports positive cash flow for businesses and safeguards confidence in the market.

The ministry highlighted initiatives such as the Time-of-Use tariff programme, which encourages industries to shift operations to off-peak hours by offering significantly lower electricity rates during those periods.

On fuel supply, the government assured Kenyans that adequate petroleum stocks had been secured, shielding the country from shortages experienced in other markets.

“Despite global volatility, Kenya has maintained a stable position, with decisive steps to ensure adequate and uninterrupted supply of petroleum products. Fuel deliveries have already been secured through the end of July, ensuring uninterrupted supply and shielding Kenyans from the shortages and disruptions experienced elsewhere,” the statement elaborated.

The government also pointed to recent measures aimed at reducing the cost of energy. It confirmed that the proposed electricity tariff review had been suspended and announced a reduction in electricity costs effective June 2026.

“In addition, effective June 2026, electricity costs have reduced by KSh0.2685 per kWh. This reduction is driven by a significant drop in the Forex Adjustment component, a decrease in the Fuel Energy Cost (FEC), and increased hydropower generation. This reflects our commitment to ensuring that gains within the sector are shared directly with Kenyans,” the statement noted.

The ministry further announced plans for lower diesel prices in the next monthly fuel review, saying the move would support transport, agriculture, manufacturing, and other sectors that depend heavily on diesel-powered operations.

Looking ahead, the government would continue investing in power generation, transmission infrastructure, and renewable energy projects to strengthen long-term energy security.

“Our objective is clear: to provide a stable, affordable, and sustainable energy system that powers industry, creates jobs, and improves livelihoods. Our message to Kenyans is therefore one of confidence and hope. We will continue to engage openly, keep our commitments and take practical measures that protect consumers, support businesses and strengthen our economy,” the statement concluded.