Kenya’s electricity consumers will face higher bills for April after the Energy and Petroleum Regulatory Authority (EPRA) introduced three new levies, reflecting rising global fuel costs and currency pressures.
In a notice published on April 24, the regulator said it had added a Foreign Exchange Fluctuation Adjustment of 123.41 cents per kilowatt-hour (kWh), a Fuel Energy Cost Charge of 347 cents per kWh, and a Water Resource Management Authority levy of 1.54 cents per kWh. The charges apply to all electricity meter readings taken in April.
The adjustments were formalised through Gazette Notices Nos. 6002, 6003 and 6004, signalling an upward revision in the cost of power for households and businesses already grappling with high living expenses.
EPRA said the new charges were necessary to reflect changes in macroeconomic conditions, including fluctuations in the Kenyan shilling against major international currencies and increased costs of fuel used in electricity generation.
“The foreign exchange adjustment accounts for the impact of currency movements on power purchase costs, most of which are denominated in US dollars,” EPRA said in its statement.
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Kenya relies partly on thermal power plants that use diesel and heavy fuel oil, making electricity tariffs sensitive to global oil price movements. The regulator noted that recent increases in international oil prices had driven up the fuel energy cost component.
Global crude markets have been volatile in recent weeks amid the ongoing Middle East conflict, with supply concerns pushing prices higher and raising energy costs worldwide.
Analysts say the situation has compounded pressure on Kenya’s power sector, where a significant share of generation capacity is tied to independent power producers paid in foreign currency.
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“The pass-through mechanism means consumers bear the brunt of both fuel price increases and exchange rate losses,” said a Nairobi-based energy economist. “When the shilling weakens and oil prices rise simultaneously, tariffs inevitably go up.”
In addition to the fuel and forex-related charges, the Water Resource Management Authority levy — though relatively small — contributes to the overall increase. The levy supports the management and conservation of water resources, which are critical for Kenya’s hydropower generation.
Kenya’s electricity mix includes geothermal, hydroelectric, wind and solar power, but thermal generation remains an important backup, particularly during periods of low rainfall when hydropower output declines.
Consumer groups have expressed concern over the latest adjustments, warning that higher electricity costs could ripple through the economy by increasing production expenses for businesses and reducing disposable income for households.
“Electricity is a key input across all sectors,” said a representative of a Kenyan consumer advocacy group. “Any increase in tariffs will ultimately be felt in the prices of goods and services.”
Small and medium-sized enterprises, already facing high borrowing costs and inflationary pressures, are expected to be among the hardest hit.
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Manufacturers have also raised concerns about competitiveness, arguing that rising energy costs could undermine Kenya’s position as a regional industrial hub.
The government has in recent years sought to stabilise electricity prices by expanding geothermal capacity, which provides a more stable and lower-cost source of power compared to fossil fuels.
However, experts say the benefits of geothermal expansion are being offset in the short term by external shocks, including currency depreciation and global energy market disruptions.
EPRA maintained that the adjustments are part of a standard tariff-setting framework designed to ensure cost recovery for power producers while maintaining system reliability.
“These components are regularly reviewed to reflect prevailing economic conditions,” the regulator said.
The new levies are expected to be reflected in bills issued in May for electricity consumed in April, adding to the financial strain on consumers amid broader cost-of-living challenges.
