Kenya Power bills: Why October’s electricity charges add Sh4.10 per unit

Electricity consumers face additional costs this month after the Energy and Petroleum Regulatory Authority published three notices in the Kenya Gazette on October 9.

The adjustments comprise a Sh3.22 fuel energy cost charge, a Sh0.87 foreign-exchange fluctuation adjustment and a Sh0.0134 water-resource management levy per kilowatt-hour.

Together, they come to approximately Sh4.10 per unit.

The foreign-exchange adjustment applies to September 2026 meter readings, while the fuel charge and water levy apply to October readings.

The combined figure describes these specific cost adjustments.

It should not be mistaken for the entire electricity tariff or automatically treated as a Sh4.10 increase compared with the previous month's total bill.

Why fuel costs are passed on

The largest component is the fuel energy cost charge, which adds Sh3.22 per unit for October readings.

Kenya generates most of its electricity from sources such as geothermal, hydro and wind, but it also uses thermal power plants, particularly when additional generation is needed.

Those plants burn fuels such as diesel or heavy fuel oil, and their operating costs can change as fuel prices and generation requirements fluctuate.

EPRA calculates the monthly adjustment using fuel prices, thermal generation and electricity generated or purchased during the relevant period.

When the cost of supplying power through fuel-powered plants changes, the charge allows some of that cost to be reflected in the regulated electricity price.

The size of the fuel charge can therefore rise or fall from one month to another.

How the exchange-rate charge works

The second adjustment is 87 cents per unit.

Some costs in Kenya's electricity sector are linked to foreign currency, including payments under certain power-purchase agreements.

When the shilling moves against the currencies used in those contracts, the cost of meeting the obligations can change.

EPRA's latest calculation recorded a combined foreign-exchange loss of approximately Sh987.56 million across KenGen, Kenya Power and independent power producers.

The adjustment spreads the relevant currency-related costs across electricity consumption rather than leaving the entire amount with one company.

Because exchange rates and the sector's financial position change over time, this line item may vary each month.

The smallest component

The water-resource management levy is 1.34 cents per unit, equivalent to Sh0.0134. It is intended to support water-resource management associated with hydropower generation.

Its contribution to the combined adjustment is very small compared with the fuel and foreign-exchange charges, but it remains a separate regulated component of electricity pricing.

What does this mean for your bill?

The arithmetic is straightforward. If all three adjustments applied to 100 units of electricity, their combined value would be about Sh410.34, before the ordinary tariff and other applicable charges and taxes.

For 50 units, the same combined calculation would be roughly Sh205.17; for 200 units, about Sh820.68.

These are illustrations of the combined adjustment, not a complete estimate of the amount a household will pay, since the notices apply to different meter-reading periods and bills include other components.

The underlying electricity rate also depends on the applicable customer tariff category and consumption.

The adjustments do not replace the base tariff, taxes or other approved charges.

For prepaid customers, the cost structure affects how much electricity the amount paid can buy.

For businesses with heavy electricity use, even small per-unit changes can add up over a month.

The main takeaway from EPRA's October notices is that part of the electricity bill reflects costs that move with fuel prices, exchange rates and water management.

Those adjustments sit alongside the standard tariff and can change each month.