Kenya Power warns of 30pc increase in electricity prices
Kenya Power offices on Aga Khan Walk in Nairobi.
Kenya Power is considering hiking electricity tariffs for large consumers by up to 30 percent if counties impose wayleave charges, chief executive officer Joseph Siror has said.
If counties impose the charges, Kenya Power will be forced to pay Sh63.8 billion—nearly a third of the sector’s total revenue needs, a situation that would trigger a tariff review hence making electricity more expensive.
This will lead to increased manufacturing costs that will in turn result in higher consumer prices for commodities.
Speaking during a Kenya Power and Kenya Editors’ Guild meeting, Mr Siror said Nairobi County last year illustrated the potential financial burden of these charges.
With 4,032 kilometers of electricity network in Nairobi alone, at a cost of sh200 per meter, the total annual wayleave claim amounted to sh806.4 million.
“If this cost is factored into the tariff, we are looking at an increase of over 30% in electricity prices. Consumers are already feeling the strain of high tariffs, and industries will face even greater challenges.,”he said.
“People, are already complaining that the tariff is a bit high. And when you look at the possible impact it can have on the industries, if that was really to be incorporated, it might be a serious challenge for some of the industries to, or rather the cost of products from the Kenyan economy is going to be quite substantially high, and it may not compete favorably with other countries,” he added.
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Mr Siror revealed that as of March 2025, total customer debt reached Sh26.7 billion, a 32.94 per cent increase from the previous year with the Households constitutes the biggest defaulters of the total debt, rising from sh11.1 billion to Sh13.57 billion, representing 22.22 per cent increase.
The county governments, whose outstanding debt has grown by a staggering 85 percent to Sh4.26 billion.
National government agencies and state institutions have also increased their arrears to Sh3.32 billion—a 48.06 percent jump within the same period.
“Kenya Power also reported that debts owed by large power consumers, including industries, have risen by 39.06 percent to Sh1.97 billion, while small and medium enterprises (SMEs) have seen their debt climb to Sh3.58 billion, an 18.57 percent increase. Of particular concern is the prolonged period of non-payment, especially by county governments, whose debt age has extended beyond 210 days—equivalent to seven months—far exceeding the 90-day debt cycle observed in other customer segments,” he said.
Addressing concerns about electricity tariffs, the CEO pointed out that the base tariff has actually decreased over recent years. In 2022-2023, the tariff stood at sh19 per unit, whereas in 2024-2025, it has reduced to sh18.16 per unit.
“The tariff adjustments are made in accordance with regulations set by the Energy and Petroleum Regulatory Authority (EPRA). Several factors influence these tariff reviews, including power generation costs, infrastructure expansion, currency fluctuations, inflation adjustments, and government-imposed taxes and levies. These elements play a crucial role in determining the final electricity price that consumers pay,” he said
Kenya Power Managing Director Joseph Siror when he appeared before the Senate Energy Committee at Parliament Buildings in Nairobi on October 17.
The company also highlighted that under the Energy Act, no levies should be imposed on energy infrastructure. However, should the conversation on these additional fees advance, the financial implications could severely disrupt the industry.
To address the debt crisis, KPLC has introduced measures such as an online billing portal and structured payment schedules. The company provides a 14-day window for bill payments and follows up with reminders via phone calls and notices before resorting to disconnection. However, critical facilities such as hospitals and street lighting remain exempt from disconnections to avoid disrupting essential services.
KPLC warned that failing to address these financial pressures could hinder investment in energy generation, transmission, and network expansion. Instead of allocating funds to infrastructure development, resources would be directed toward covering the proposed levies, potentially slowing down the country's economic growth.
“This is a huge concern for businesses relying on stable and affordable electricity. If these charges are enforced, we will likely see reduced investments and a slowdown in industrial growth,” he said.