By Benadeta Mwaura - Reporter
Kenya, April 22, 2026 - Kenya’s energy regulator, Energy and Petroleum Regulatory Authority (EPRA), is now attempting to calm fears over rising electricity bills even as the country grapples with one of the sharpest fuel price shocks in recent history.
The reassurance comes at a delicate moment. Just days after EPRA announced steep fuel price increases, pushing petrol and diesel above KSh200 per litre, concerns quickly shifted to electricity, where fuel costs play a direct and immediate role in pricing.
At the centre of EPRA’s message is a technical but critical distinction: while base electricity tariffs remain relatively stable, monthly bills fluctuate due to what are known as “pass-through costs.” These include the fuel energy cost charge, foreign exchange adjustments, inflation, and regulatory levies, variables that move with global markets.
According to EPRA data, these additional charges alone can add between KSh4.5 and KSh5.7 per kilowatt-hour to electricity bills, with taxes contributing a further KSh4.6 per unit.
That means even without a formal tariff increase, consumers can still feel the impact of rising global fuel prices through their monthly bills.
The link between fuel and electricity is particularly significant because Kenya still relies partly on thermal power generation, which depends on imported petroleum products.
When global oil prices rise, as they have in recent weeks due to geopolitical tensions, generation costs increase, and those costs are passed on to consumers.
EPRA has acknowledged this pressure but insists that measures are in place to cushion households. Among the strategies being deployed are efforts to stabilise fuel costs in power generation, improve energy mix efficiency, and enhance regulatory oversight of tariffs.
The regulator also points to the structure of electricity pricing itself. The base tariff, last approved in 2023 and running through the 2025/26 financial year, covers fixed costs such as transmission, distribution, and system operations.
This component has remained largely unchanged, offering some level of predictability.
However, it is the variable portion, especially fuel-related charges, that continues to drive volatility.
Recent adjustments illustrate the scale of the challenge. In January 2026, EPRA applied changes that increased electricity costs by about KSh5.52 per kilowatt-hour, largely due to higher fuel and foreign exchange costs.
For an average household consuming 300 units, this translates into an additional cost of nearly KSh1,300 in a single billing cycle.
Demand pressures are also rising. EPRA reports that electricity consumption grew by 8.25 percent between July and December 2025, reflecting increased household and industrial usage.
This growing demand adds another layer of strain to a system already exposed to global price shocks.
Despite these realities, EPRA maintains that Kenya is not heading toward uncontrolled electricity price escalation.
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Instead, the authority argues that the current framework, combining fixed tariffs with adjustable cost components, allows for flexibility while avoiding abrupt structural changes to pricing.
Still, the timing of the reassurance has not gone unnoticed.
For many consumers, the concern is not theoretical. It is immediate. Fuel prices have already surged by as much as 24 percent in a single review cycle, driven by a sharp rise in global landed costs.
And because fuel feeds directly into electricity generation, the expectation is that power bills will follow the same trajectory.
This creates a broader economic ripple effect. Higher electricity costs raise production expenses for businesses, increase operational costs for manufacturers, and ultimately feed into consumer prices across sectors, from food to transport.
In this context, EPRA’s strategy is as much about communication as it is about policy.
By emphasising the stability of base tariffs and the temporary nature of fuel-driven fluctuations, the regulator is attempting to reassure a market already on edge.
But the underlying reality remains unchanged.
As long as global oil prices remain volatile, and as long as Kenya continues to rely on imported fuel for part of its energy mix, electricity costs will remain exposed to the same pressures currently driving the fuel crisis.
The question now is not whether electricity prices will be affected.
It is how much, and for how long.