Foreign Affairs Principal Secretary Korir Sing'oei has explained the Parliamentary Budget Office's (PBO) report that Kenya has the highest electricity prices in East and Central Africa.
In a statement on social media, Sing'oei confirmed the assertion but also noted that Kenyans also have the highest electricity access in the region.
This, he stated, led to high costs being accrued for building and maintaining the electricity infrastructure. However, he concurred that there might be inefficiencies that, if streamlined, could lower the high cost.
"True, but Kenya also has the highest electricity access rate in the region," Sing'oei stated.
"The cost of building and maintaining the most extensive electricity infrastructure cannot be ignored. Yet, there may be inefficiencies that, if addressed, could perhaps lower the cost of energy."
This is despite the frequent blackouts that have been experienced over the last few years, with the government citing aging infrastructure as the cause.
In East Africa alone, Kenya leads with Ksh33 per unit, Uganda follows with Ksh22, then Tanzania with Ksh11, and possibly the lowest rate is Ethiopia with the low cost of Ksh0.77 per unit.
“The cost of energy remains significantly high for the majority of Kenyans and also in comparison to the region. For instance, the average residential electricity price per kWh in Kenya is $0.26, Uganda is $0.17, Tanzania is $0.09, South Africa is $0.12, and Ethiopia is $0.006,” part of the PBO report read.
The report, which is meant to advise lawmakers when preparing budgets, failed to reveal the reason why Kenya led with such a significant margin, something that PS Sing'oei sought to clarify.
This comes even as reports show that the cost of electricity in Kenya has significantly reduced as compared to last year. In February, Kenyans paid Ksh1,255 for 50 units of electricity, compared to Ksh1,406 for the same quantity in 2024.
Notably, countries like Ethiopia and Uganda, with low electricity prices, reportedly experience a more reliable supply of electricity than Kenya, which is prone to regular blackouts.
However, this steady supply in the countries has largely been attributed to smaller networks as compared to Kenya, as well as massive power generation from dams.
The report on high prices comes at a time when Kenya Power is facing scrutiny over purchasing agreements it made with independent producers, which reportedly had steep wholesale prices, making it difficult to lower retail prices without making losses.
Kenyans also pay at least four taxes in addition to a forex charge, fuel surcharge, and consumption charge when purchasing electricity, further increasing the price significantly.
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