Kenya Withdraws Proposed Electricity Tariff Hike, Protecting Consumers From Higher Power Costs

The Kenyan government has withdrawn a proposal by the Kenya Power and Lighting Company (KPLC) to increase electricity tariffs, providing relief to households, businesses, and industries across the country. The decision was announced on June 3, 2026, by Energy and Petroleum Cabinet Secretary Opiyo Wandayi, who stated that the move was intended to protect consumers from higher energy costs and support economic growth and job creation.

KPLC had submitted the tariff review application on March 31, 2026, seeking approval for higher retail electricity rates that were scheduled to take effect from July 1, 2026, to June 2029. The proposed changes included tariff increases ranging from 14% to 31.8%. The application was submitted on behalf of the wider energy sector, which includes key state-owned entities such as KenGen, KETRACO, the Geothermal Development Company, and the Rural Electrification and Renewable Energy Corporation (REREC).

One of the most debated aspects of the proposal was the planned revision of the lifeline tariff category, which is designed to support low-income households. KPLC proposed reducing the subsidized consumption threshold from 100 kilowatt-hours (kWh) per month to 30 kWh. This change would have resulted in many consumers being shifted to higher-priced electricity categories. The company also proposed increasing the lifeline tariff from KSh 12.23 per kWh to KSh 14 per kWh. For ordinary domestic consumers, the rate was expected to rise from KSh 16.45 per kWh to KSh 21.68 per kWh.

The tariff review process was required under the Energy Act 2019 because the current electricity tariff structure, introduced in April 2023, is set to expire at the end of June 2026. The Energy and Petroleum Regulatory Authority (EPRA) had already initiated preparations for public consultation forums in May before postponing them. Following the withdrawal of the application, any future tariff revision will require KPLC to submit a new application and undergo the full legal review process, including technical assessments and public participation.

Despite the suspension of the proposed tariff increase, electricity bills will continue to fluctuate. The government clarified that only the base tariff has been frozen. Other charges, including fuel cost adjustments, foreign exchange fluctuations, water resource management levies, and VAT, will continue to be reviewed monthly by EPRA. As a result, changes in global fuel prices and currency exchange rates will still affect the final electricity costs paid by consumers.