Kenyans to Pay More for Electricity as EPRA Announces New Prices

A collage of KPLC employees on duty (left) and apartments in Nairobi (right)
A collage of KPLC employees on duty (left) and apartments in Nairobi (right).
KPLC/ Rent Air

The cost of electricity is expected to skyrocket after the Energy and Petroleum Regulatory Authority (EPRA) reviewed rates on Friday, March 24.

In a statement read by EPRA's director general, Daniel Kiptoo Bargoria, the energy regulator noted that electricity prices will, as of April 1, 2023, increase by up to 63 per cent.

In the new tariffs, consumers using 30 units and below will pay Ksh12 per unit from Ksh10, while those using eleven and ten units will pay Ksh15.80 per unit. 

“With a view of meeting the social policy objective, the Lifeline Tariff band has been reduced from100-kilowatt hour(kWh) per month to 30kWh, to cushion and address the needs of low-income households in the society,” EPRA noted.

Fuel attendant refilling a car and technicians fixing power issue on electricity lines
Fuel attendant refilling a car, and technicians fixing power issues on electricity lines.
Cryton Motors and KBC

EPRA revealed that it had approved higher tariffs by Kenya Power to get enough money that will be used to repair or replace ageing distribution systems.

The request by Kenya Power was submitted to EPRA in October 2022, when the power distributor asked for a necessary review of the unit prices. 

“Accordingly, these consumers will be cross-subsidised by the other consumer categories to protect the vulnerable members of society. 

"Despite this reduction, the Lifeline Tariff band will account for 6.3 million customers, representing 71.31 per cent of the total number of consumers. This covers a majority of the vulnerable sector base also known as 'Hustlers'," the regulator added.

Kenya Power observed that the new tariffs will grant the distributor a net earning of Ksh184.9 billion in the Financial Year 2023/24. 

KPLC expects to record a net earning of Ksh189.6 billion in the Finacial Year 2024/25 and Ksh193.7 in 2025/2026. 

“This will meet energy purchase costs and allow for system expansion,” EPRA's Director-General Daniel Kiptoo noted. 

However, the regulator also announced that on average, commercial and industrial consumers will realise a reduction of Ksh1.15 per kWh.

"This will help spur economic activities of the manufacturing industries and in turn lower cost of goods," EPRA noted. 

EPRA's review on the cost of electricity is the first since 2018 when the regulator revised electricity prices to Ksh10 for those consuming between eleven to ten units. 

Kenya Power staff at work
Kenya Power staff attending to a transformer during a past maintenance exercise in Nairobi County.
Kenya Power