The Energy and Petroleum Regulatory Authority (EPRA) has announced a foreign exchange fluctuation adjustment that will affect electricity prices for all meter readings taken in March 2025, a move expected to drive up power costs for consumers.
In a notice issued by Director-General Daniel Bargoria, EPRA stated that the adjustment will be an additional 80.70 cents per kilowatt-hour (kWh) due to currency fluctuations.
According to EPRA, the adjustments are in line with Clause 2 of Part III of the Schedule of Tariffs 2023, which allows electricity prices to be modified based on exchange rate variations.
"Pursuant to Clause 2 of Part III of the Schedule of Tariffs 2023, notice is hereby given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a foreign exchange fluctuation adjustment of plus 80.70 cents per kWh for all meter readings taken in March 2025," read part of the notice by Kiptoo.
As of February this year, the current electricity tariffs for domestic consumers with lifeline users (0–30 kWh per month) stand at approximately Ksh12.23 per kWh.
On the other hand, consumers using over 100 kWh per month are charged Ksh19.08 per kWh.
The new adjustment reflects exchange losses incurred by power producers and suppliers due to fluctuations in the value of the Kenyan shilling against foreign currencies used to finance electricity generation.
The data used to calculate the forex adjustment shows that independent power producers (IPPs) bore the largest exchange losses, amounting to Ksh736.18 million.
Kenya Power and Lighting Company (KPLC) recorded an exchange gain of Ksh25.29 million, while Kenya Electricity Generating Company (KenGen) faced a loss of Ksh12.78 million. The total exchange loss across all entities stood at Ksh748.69 million.
In February 2025, Kenya generated and purchased a total of 1.12 billion kWh of electricity, excluding exports. The forex fluctuation adjustment will be factored into consumer electricity bills, further increasing the cost of power for households and businesses.
The announcement comes amid concerns over rising electricity costs in the country, with many Kenyans already grappling with high energy bills due to inflation and increased fuel prices.
EPRA’s adjustment is expected to impact both domestic and industrial consumers, adding pressure on efforts to stabilise energy costs.
Furthermore, the authority announced that it will be adjusting the Water Resource Management Authority (WRMA) Levy with an addition of 1.28 cents per kWh for all meter readings taken in March 2025, signalling a further increase in prices.
