Government Withdraws Kenya Power Tariff Proposal to Shield Consumers From Higher Electricity Costs
News Updated: 03 June 2026 22:59 EAT
Energy Cabinet Secretary Opiyo Wandayi
The government has withdrawn a proposed retail electricity tariff review that had been submitted by Kenya Power in March, effectively stopping plans that could have increased electricity bills for millions of consumers across the country. Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the decision was made to protect households, businesses and industries from additional financial pressure amid ongoing economic challenges.
The proposal had been submitted to the Energy and Petroleum Regulatory Authority (EPRA) as part of a review of electricity tariffs that would have guided pricing over the next several years. Had it been approved, the new tariff structure was expected to take effect from July and remain operational through the end of the review period.
Wandayi said the government intervened after carefully assessing the potential impact of the proposed changes on consumers and the broader economy. He noted that while the sustainability of the energy sector remains important, protecting Kenyans from a rise in the cost of living was a priority consideration in reaching the decision.
The withdrawal is expected to come as a major relief to households that were concerned about the possibility of higher monthly power bills. Consumer groups and business organizations had raised concerns that an increase in electricity costs would further strain family budgets and increase operating expenses for enterprises already facing economic pressures.
One of the most debated aspects of the proposal involved changes to the subsidized electricity consumption category that benefits low-income consumers. Critics argued that the proposed adjustments could have pushed many households into more expensive tariff bands, resulting in significantly higher monthly electricity charges.
The government maintained that affordable electricity remains critical to economic growth, industrial development and job creation. Officials argued that keeping power costs stable will help support businesses, encourage investment and improve the competitiveness of key sectors of the economy.
Manufacturers and commercial enterprises are also expected to benefit from the decision, as electricity remains one of the most significant operational costs for many businesses. Industry players have consistently called for predictable and affordable energy prices to support production and expansion.
Wandayi emphasized that any future review of electricity tariffs must strictly adhere to the procedures established under the Energy Act. These include comprehensive technical assessments, stakeholder consultations, public participation and regulatory approval before any changes can be implemented.
The Cabinet Secretary further clarified that the withdrawal of the tariff review application will not affect electricity supply, service delivery or ongoing investments in the energy sector. Kenya Power and other industry players will continue operating under the existing tariff framework while discussions on long-term sector sustainability continue.
The move represents one of the government's most significant interventions on consumer costs this year and is likely to be welcomed by millions of electricity users across the country. With the proposal now withdrawn, current electricity tariffs will remain in place, providing consumers with certainty and shielding them from immediate increases in power costs.
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FELIX MAKONA
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