Kenya has withdrawn a proposed electricity tariff review that could have raised power costs for households and businesses, in a move aimed at easing cost-of-living pressures amid rising inflation and higher fuel prices.
Energy Cabinet Secretary Opiyo Wandayi said the decision followed government consultations and stakeholder engagement, adding that the priority was to support economic stability and shield consumers from additional financial strain.
The now-shelved review had been submitted by Kenya Power on March 31 and was expected to determine electricity pricing for the 2026–27 to 2028–29 period. It had also been set to trigger nationwide consultations through the Energy and Petroleum Regulatory Authority (EPRA).
Instead, the government opted to maintain existing electricity tariffs, effectively freezing the planned adjustments.
“Following consultations within government and engagement with key stakeholders in the sector, the retail electricity tariff review application that was submitted on March 31 has been withdrawn,” Wandayi said.
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The decision comes at a time when Kenyan households are facing rising living costs driven by higher food prices, transport expenses and fuel costs, with inflationary pressures remaining elevated.
Authorities said the move was intended to balance the financial sustainability of the power sector with broader macroeconomic concerns, including growth, employment and household welfare.
The proposed tariff changes would have affected pricing across the electricity value chain for the 2026–29 regulatory period, potentially altering monthly bills for millions of consumers.
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Businesses, particularly in manufacturing, retail and services, had raised concerns that higher electricity costs would increase operating expenses and eventually be passed on to consumers through higher prices for goods and services.
Electricity remains one of the most significant cost components for Kenyan firms, alongside fuel and transport costs, making tariff decisions highly sensitive for the private sector.
According to the Ministry of Energy, the withdrawal reflects a policy choice to support economic activity while ensuring the energy sector remains operationally sustainable.
“This decision reflects the need to promote a sustainable energy sector while protecting households, businesses and industries from possible cost escalation,” Wandayi said.
The government said maintaining current tariffs would provide temporary relief to consumers and help sustain economic momentum at a time of global uncertainty and domestic price pressures.
However, officials noted that other elements of electricity pricing remain subject to external market fluctuations, particularly the fuel energy charge, which is adjusted monthly based on international oil prices.
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The proposed tariff review had already entered early stages of regulatory preparation, including planned public participation forums by EPRA, which have now been halted following the withdrawal.
Under Kenya’s Energy Act, any changes to electricity tariffs must undergo technical assessment, stakeholder consultation and public review before implementation.
Analysts say the decision underscores the political sensitivity of utility pricing in Kenya, where electricity costs have long been a key concern for both households and businesses.
While the current freeze offers short-term relief, energy sector experts note that long-term investment in generation, transmission and distribution will still require a sustainable pricing framework to ensure reliability and expansion of supply.
For now, however, consumers are expected to benefit from stable electricity bills as the government balances fiscal pressures, inflation control and economic growth priorities.
