Electricity bills: Kenyans to pay more per unit as EPRA sets new charges

Kenyans are set to face an increase in their electricity bills after the Energy and Petroleum Regulatory Authority (EPRA) set new power adjustments for August 2026.

According to EPRA in notices dated August 14, 2026, Kenyan electricity consumers will pay a combined Sh4.70 per kilowatt-hour (kWh) in three variable power-cost adjustments for meter readings taken in the month.

The adjustments comprise a Fuel Energy Cost Charge (FECC) of Sh3.51 per kWh, a Foreign Exchange Fluctuation Adjustment (FERFA) of Sh1.1777 per kWh and a Water Resource Management Authority (WRMA) levy of Sh0.015 per kWh.

Together, the three charges amount to Sh4.7027 for every unit consumed during the applicable August billing period.

The charges are variable components of the electricity price and are applied to electricity energy charges under the Schedule of Tariffs 2023.

This means a consumer using 100 units in August would incur about Sh470.27 from the three components alone, before the base electricity charge and other applicable taxes and charges are factored into the bill.

The largest of the three adjustments is the Fuel Energy Cost Charge, which EPRA set at 351 Kenya cents per kWh for August.

The charge is calculated using energy generation and purchase data from the preceding month.

For the August adjustment, EPRA used generation and energy purchase information for July 2026, when total energy generated and purchased, excluding exports, stood at 1.376 billion kWh.

The underlying data showed differing movements in the costs of electricity generation sources.

Fuel prices at some diesel-powered plants declined compared with June. At the Kipevu III Diesel Plant, for example, the fuel price variation was a decrease of Sh13.80 per kilogramme, while Mandera Diesel recorded a decrease of Sh61.46 per kilogramme.

However, the data also showed increases in geothermal steam charges.

Olkaria IV, Olkaria I Unit IV and V, and Sosian Menengai each recorded a Sh1.16 per kWh increase in steam charge compared with the June figures.

The second-largest adjustment is the Foreign Exchange Fluctuation Adjustment, which stands at 117.77 cents per kWh in August.

The charge reflects foreign exchange-related costs incurred by electricity sector players. According to the figures contained in the EPRA notice, KenGen, Kenya Power and Independent Power Producers recorded a combined exchange loss of Sh1.353 billion in July.

Independent Power Producers accounted for the largest share at Sh1.039 billion, while Kenya Power recorded an exchange loss of Sh168.87 million and KenGen Sh145.26 million.

The losses form part of the calculations used to determine the foreign exchange adjustment passed through to electricity consumers.

The third component is the WRMA levy, set at 1.50 cents per kWh for August.

Unlike the two larger adjustments, the levy is linked specifically to electricity purchased from hydropower plants with an installed capacity of 1 megawatt or more.

EPRA's July data shows that 344.09 million kWh was purchased from qualifying hydropower plants during the month.

The approved levy on energy purchased from the specified hydropower sources is 5 cents per kWh, with the resulting adjustment applied to electricity prices under the applicable tariff schedule.