Kenyans will pay more for electricity from August 2026 after the Energy and Petroleum Regulatory Authority (EPRA) announced three monthly adjustments to electricity bills that add Sh4.70 for every unit (kilowatt-hour or kWh) of power consumed. These charges apply to meter readings taken during the month.
The total of Sh4.7027 per kWh breaks down as follows;
- A Fuel Energy Cost Charge (FECC) of Sh3.51 per kWh (351 Kenya cents)
- A Foreign Exchange Fluctuation Adjustment (FERFA) of Sh1.1777 per kWh (117.77 cents)
- A Water Resource Management Authority (WRMA) levy of Sh0.015 per kWh (1.50 cents).
These are variable “pass-through” costs under the existing Schedule of Tariffs. They sit on top of the base energy charge (the core price for electricity itself) plus taxes, levies and other fixed or regulated fees. They do not replace the full bill but raise the cost of every unit used.
EPRA reviews and publishes these layers regularly so that the price tracks actual expenses rather than leaving utilities short or over-recovering permanently.
New Electricity Bills Breakdown
The largest slice is the Fuel Energy Cost Charge of Sh3.51. This recovers the money spent on fuel (mainly diesel and other oils) to run thermal power plants, plus related generation and purchase costs from the previous month. EPRA calculated it using July 2026 data. That is, total electricity generated and purchased (excluding exports) reached about 1.376 billion kWh. Costs varied sharply by plant.
Isolated thermal stations in remote areas posted the highest figures. North Horr posted Sh396.12 per kWh, Faza Island at Sh389.84, Rhamu at Sh363.18, Karmoliban at Sh371.91 and Baragoi at Sh346.75. This is because transporting fuel there is expensive. Geothermal stations, by contrast, recorded much lower steam-related charges around Sh3.75 per kWh at places such as Olkaria IV and Sosian Menengai. Some thermal plants even saw fuel-price reductions compared with June (for example, Kipevu III and Mandera), yet the overall weighted average still produced the Sh3.51 charge.
The Foreign Exchange Fluctuation Adjustment charge is calculated to Sh1.1777. Many power-purchase agreements and imported inputs are priced in foreign currency, mostly US dollars. When the Kenyan shilling weakens or other exchange movements create net losses, the extra cost is passed through. For July the sector recorded combined exchange gains and losses of about Sh1.353 billion: Independent Power Producers accounted for roughly Sh1.039 billion, Kenya Power for Sh168.87 million and KenGen for Sh145.26 million. Dividing that across the units sold produces the per-kWh figure.
The smallest component is the WRMA levy of Sh0.015. This funds water-resource management for hydropower. It is calculated on energy bought from hydro stations of 1 MW capacity or larger (including Gitaru, Kamburu, Kiambere, Kindaruma, Masinga, Turkwel and Sondu Miriu). In July those stations supplied 344.09 million kWh; the approved rate of 5 cents per kWh on that volume, spread across all consumers, yields the 1.50-cent levy.
New Electricity Charges
These charges scale directly with consumption. A household or small business that uses 50 units in August will see about Sh235 from the three adjustments alone. At 100 units the extra is roughly Sh470. At 200 units it climbs to about Sh941. That amount is added before the base energy charge, VAT (currently 16 percent on certain components), the Rural Electrification Programme levy and other statutory fees. The final bill will therefore be higher than it would have been without the adjustments, even if usage stays the same.
Because the charges are applied to every unit, higher-consuming customers (those above the lifeline bands of 0–30 or 31–100 kWh) feel a larger absolute increase. Prepaid-token users will notice the difference when they next load units; post-paid customers will see it on their next statement that covers August readings.
Kenya’s power mix includes geothermal, hydro, wind, solar and thermal sources. Thermal plants remain necessary for reliability, especially when hydro output dips or demand peaks, but they are sensitive to global oil prices and local logistics. Foreign-currency exposure arises because many independent power producers and equipment contracts are dollar-linked. The WRMA levy is a longstanding statutory contribution tied to the water used by large dams.
EPRA emphasises that the three figures are not a permanent hike in the base tariff. The Schedule of Tariffs 2023 remains in force after an earlier review application was withdrawn; the monthly adjustments simply keep the system cost-reflective. Similar reviews occur every month, so the numbers can rise or fall depending on fuel prices, exchange rates and generation data.
For households already stretched by living costs, the Sh4.70 addition compounds pressure. Businesses, especially small manufacturers and shops that rely on steady power, face higher operating expenses that may be passed on to customers. At the same time, the transparent monthly publication allows consumers to track the drivers and, where possible, adjust usage—switching off unused appliances, using energy-efficient bulbs or shifting heavy loads to off-peak periods where available.
Consumers will see the effect directly on the units they buy or are billed for this month, on top of the established base rates and taxes.
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