By Benadeta Mwaura - Reporter
Kenya, August 17, 2026 - Kenyan households and businesses will pay an additional KSh4.70 for every unit of electricity consumed in August, following new monthly adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA).
The regulator published three adjustments for electricity meter readings taken during August 2026, comprising a Fuel Energy Cost Charge of KSh3.51 per kilowatt-hour (kWh), a Foreign Exchange Fluctuation Adjustment of KSh1.1777 per kWh and a Water Resource Management Authority (WRMA) levy of KSh0.015 per kWh. Together, the charges amount to KSh4.7027 per unit.
The charges were contained in Gazette Notices dated August 14 and will apply to electricity consumed during the month.
However, the KSh4.70 figure does not represent the total price consumers pay for electricity. EPRA clarified that the three charges are additional components of the approved electricity tariff, with bills also containing other tariff components, taxes and statutory levies.
The largest component of the August adjustment is the Fuel Energy Cost Charge, which adds KSh3.51 to every unit consumed.
EPRA said the charge was calculated using electricity generated and purchased from various power plants in July, including diesel, geothermal and thermal plants, as well as electricity imports.
The cost varies significantly depending on the type and location of the generating plant.
Some of the highest fuel costs recorded in the regulator's schedule were at isolated thermal stations, including North Horr at KSh396.12 per kWh, Rhamu at KSh363.18 and Baragoi at KSh346.75.
The figures illustrate the additional cost involved in supplying electricity to remote areas that depend on isolated thermal generation.
For consumers connected to the national grid, however, the fuel energy cost is reflected as a common adjustment on electricity bills.
The second-largest adjustment is the Foreign Exchange Fluctuation Adjustment, which stands at approximately KSh1.18 per kWh for August.
EPRA attributed the charge to foreign-exchange-related costs incurred across the electricity supply chain.
The regulator reported exchange gains and losses totalling approximately KSh1.353 billion involving Kenya Power, KenGen and independent power producers.
The forex component reflects the fact that parts of Kenya's electricity-generation and power-purchasing arrangements are exposed to movements in international currencies.
When the shilling moves against currencies such as the US dollar, the cost of meeting foreign-currency obligations can change, with the resulting adjustment eventually reflected in consumer electricity prices.
Consumers will also pay an additional 1.5 cents per unit through the Water Resource Management Authority levy.
The charge is associated with electricity generated from hydropower and is significantly smaller than the fuel and foreign-exchange components.
Its impact on the final bill is therefore limited compared with the KSh3.51 fuel charge and KSh1.18 forex adjustment.
For a household consuming 100 units in August, the three new adjustments alone would amount to approximately KSh470 before the other components of the electricity bill are considered.
A household consuming 200 units would face roughly KSh940 from the three adjustments.
This does not mean that a 100-unit consumer will receive a KSh470 electricity bill. Rather, the figure represents the amount attributable to the three August adjustments before other tariff components, taxes and levies are included.
The impact will consequently vary depending on how much electricity a household consumes.
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For businesses, the effect could be considerably larger.
Small enterprises such as salons, restaurants, bakeries, welding workshops, cybercafés and shops that depend heavily on electricity will have to factor the additional cost into their monthly operating expenses.
Energy-intensive manufacturers will also be exposed to the increase because electricity represents a significant component of production costs.
EPRA's latest adjustment comes only days after Kenya Power raised concerns about the cost implications of integrating more variable renewable energy into the national grid.
The utility warned that the intermittent nature of wind and solar power could create challenges in maintaining consistent grid frequency and voltage when generation fluctuates sharply.
Kenya has significantly expanded its renewable-energy generation, particularly geothermal, wind and solar.
But integrating variable sources into the grid requires additional investment in transmission infrastructure, balancing capacity and systems capable of managing changes in electricity supply.
Kenya Power has therefore urged policymakers to consider these costs when approving new generation projects.
The debate comes at a time when consumers are already facing pressure from food, transport and housing costs.
Any increase in electricity prices therefore has implications beyond the monthly power bill.
Businesses may pass higher energy costs on to consumers through increased prices for goods and services, while households using electricity for cooking and other essential activities have less disposable income available for other expenses.
The August adjustment also highlights how much of Kenya's electricity pricing can change from month to month.
The fuel charge is particularly sensitive to the cost of thermal generation, while the forex adjustment reflects movements and costs associated with foreign-currency exposure in the power sector.
This means that even when the underlying electricity tariff remains unchanged, consumers can experience significant movements in the amount they pay because of these variable components.
For example, previous monthly adjustments have also included substantial fuel and forex charges. In July, EPRA imposed a KSh3.20 per unit fuel energy cost charge and a KSh1.4841 forex adjustment, alongside the WRMA levy and a separate inflation adjustment.
The August figures therefore continue a pattern in which variable costs remain an important determinant of what consumers ultimately pay for electricity.
For households and businesses, the immediate impact is straightforward: every additional unit consumed in August carries roughly KSh4.70 in the three new adjustments alone.
The broader question is whether these costs will ease in subsequent months as fuel prices, exchange rates and the country's generation mix change.
For now, Kenyans buying electricity tokens or receiving postpaid bills will have to contend with another increase in the cost of power at a time when household and business budgets are already under pressure.
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