What the new EPRA charges mean for your monthly electricity bill

The Energy and Petroleum Regulatory Authority (EPRA) has sought to put recent changes in electricity billing into context, explaining that while some pass-through charges have increased, the overall effect is a reduction in the cost of electricity for households and businesses.

Latest tariff schedules show that the Fuel Energy Cost (FEC) has risen from KSh3.06 per kilowatt-hour (kWh) in May to KSh3.14 per kWh in June, an increase of KSh0.08 per unit.

The Water Resources Management Authority (WRMA) levy also increased marginally from KSh0.0135 to KSh0.0142 per kWh, adding KSh0.0007 per unit.

However, the increases are outweighed by a sharp decline in the Foreign Exchange (Forex) Adjustment, which dropped from KSh1.1033 to KSh0.7541 per kWh, translating to a reduction of KSh0.3492 per unit.

The combined effect is a net decrease of KSh0.2685 per kWh across all customer categories, meaning consumers will pay less for electricity despite the rise in fuel-related charges.

The clarification comes after concerns that the increase in the fuel cost component would translate into higher electricity bills.

Energy Cabinet Secretary Opiyo Wandayi said the government had deliberately taken measures to cushion consumers and businesses from rising energy costs.

"To cushion businesses and in extension households, the Government suspended the proposed electricity tariff review. In addition, effective June 2026, electricity costs have reduced by KSh0.2685 per kWh," he said in a statement following a consultative meeting with the Kenya Association of Manufacturers.

The ministry attributed the reduction to movements in several tariff components, including a significant drop in the forex adjustment and changes in fuel costs, while also citing increased hydropower generation.

Electricity bills in Kenya comprise several variable pass-through charges that are reviewed periodically to reflect actual costs incurred in generating and supplying power. As a result, individual components can move in different directions, with the overall tariff determined by their combined effect.

For June, the KSh0.08 increase in the fuel energy cost and the negligible KSh0.0007 increase in the WRMA levy are more than offset by the KSh0.3492 reduction in the forex adjustment, resulting in consumers paying 26.85 cents less for every unit of electricity consumed.

The government said maintaining affordable and reliable energy remains a priority as it seeks to support manufacturing and lower the cost of doing business.

"We remain equally committed to supporting productive sectors and lowering the cost of doing business," Wandayi said, adding that the government also expects further reductions in diesel prices during the next monthly review to provide additional relief for transport, agriculture and manufacturing.

The latest adjustments underscore the importance of considering the full composition of electricity tariffs rather than isolated cost components. While the fuel charge has edged up, the larger decline in the forex adjustment means the overall price paid by consumers has fallen.