Electricity consumers in Kenya are set to pay higher power bills after the Energy and Petroleum Regulatory Authority (EPRA), the regulator in charge of the sector, introduced new charges in its April 2026 tariff review.
According to EPRA, the changes outline three new cost components that will be applied per kilowatt-hour (kWh) consumed.
These include a Foreign Exchange Fluctuation Adjustment, a Water Resource levy, and a Fuel Energy Cost Charge (FECC), all of which will be reflected in consumers’ monthly bills.
Under the review, the fuel cost charge will add 347 cents per kWh, the highest among the three. The forex adjustment will contribute 123.41 cents per kWh, while the water levy will add 1.54 cents per kWh.
Tariff breakdown
EPRA Acting Director-General, Joseph Oketch, said the forex adjustment reflects exchange-related costs that exceeded KSh1.3 billion ($10.07 million) during the period under review.
These costs relate to payments made to electricity producers and suppliers, including Kenya Electricity Generating Company, Kenya Power, and Independent Power Producers (IPPs).
“The adjustments are necessary to reflect the actual cost of generating and supplying electricity amid fluctuating fuel prices and currency movements,” Oketch said.
Meanwhile, the water levy applies to electricity generated from hydropower sources such as Gitaru Dam, Kiambere Dam, and Masinga Dam, which contribute a significant share of the country’s power supply.
The company noted that the revised charges are based on actual costs incurred in March 2026, particularly in power generation and supply.
Fuel costs remain the largest contributor
The Fuel Energy Cost Charge (FECC) accounts for the largest portion of the increase, reflecting the cost of fuel used in thermal power generation.
EPRA noted that diesel-powered plants are used to support the national grid during periods of peak demand or when hydropower output declines. The cost of operating these plants is passed directly to consumers through the monthly fuel charge.
However, the impact of the increase will vary across regions. Areas that rely heavily on diesel-powered electricity, including Turkana County, Lamu County, and Homa Bay County, are expected to face higher costs due to logistical challenges in transporting fuel.
In contrast, regions connected to geothermal energy sources, particularly around Olkaria, may experience relatively lower increases due to the lower cost of steam-based power generation.
More insights
In addition to fuel costs, exchange rate movements have contributed significantly to the April tariff adjustments.
Many electricity supply agreements and fuel imports are denominated in foreign currencies. As a result, fluctuations in the Kenyan shilling directly affect the cost of electricity supplied to the grid.
Data from recent tariff reviews show that the forex adjustment has increased compared to previous months, indicating higher exchange-related costs within a short period.
The regulatory body maintains that such adjustments are part of an established pricing framework that allows utilities to recover costs incurred in power generation and distribution without
What you should know
According to EPRA, Kenya’s electricity mix includes hydropower, geothermal, wind, and thermal sources, with thermal plants used to stabilise supply.
It noted that the Fuel Energy Cost Charge is typically the most variable charge, linked directly to fuel prices and thermal generation, while the Water Resource levy, applied to hydropower generation, supports water resource management.
The company added that its monthly review mechanism is designed to align consumer tariffs with actual costs, with the April 2026 adjustment reflecting higher fuel and foreign exchange costs recorded in March.
