Kenyans are set to pay more for electricity after new tariff adjustments by the Energy and Petroleum Regulatory Authority (EPRA) pushed up the cost of every unit consumed in April, according to official Gazette notices.
The adjustments, published in Gazette Notices No. 6002, 6003, and 6004, show that EPRA applied three separate charges linked to fuel costs, foreign exchange losses, and a water levy.
Together, the three added about Sh4.7 to every unit of electricity before taxes and other charges.
The biggest increase came from the fuel energy cost charge, which added Sh3.47 per kilowatt hour.
EPRA said this reflects the actual cost of fuel used in electricity generation in March 2026.
Data in the Gazette shows that power plants across the country, including diesel stations in areas such as Mandera, Wajir and Moyale, contributed to the rise.
The figures reveal that although diesel plants produce a smaller share of electricity, they incur much higher fuel costs than geothermal and hydro stations.
For instance, diesel stations in remote regions recorded some of the highest fuel prices, pushing up the overall average cost of electricity.
EPRA then spread the total fuel cost across more than 1.3 billion units of electricity generated and purchased in March, which resulted in a uniform charge of Sh3.47 per unit.
Forex Losses Push Up Tariffs
In a separate Gazette notice, EPRA introduced a foreign exchange fluctuation adjustment of Sh1.23 per unit.
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The regulator said this charge is meant to recover exchange rate losses incurred by electricity producers and suppliers, many of whom have obligations in foreign currency.
The Gazette shows that the electricity sector recorded a combined forex loss of about Sh1.34 billion in March 2026. Independent power producers accounted for the largest portion of the loss, followed by Kenya Power and other sector players.
The losses arise because costs such as fuel imports, power purchase agreements, and loans are often paid in US dollars.
When the Kenyan shilling weakens, these costs increase and are passed on to consumers.
Just like the fuel charge, the forex losses were divided across the total electricity generated during the month, turning the billion-shilling figure into a per-unit charge paid by all consumers.
A third adjustment came from the Water Resource Management Authority levy. The charge, set at 1.54 cents per unit, is linked to electricity generated from hydropower stations such as Gitaru, Kiambere, Turkwel and Kamburu.
The Gazette reports that about 334 million units of electricity were generated by hydropower in March. Although the levy is applied to hydro power, the cost is spread across all electricity consumed, making its impact on the final bill relatively small.
EPRA on Rising Electricity Bills
Combined, the three charges added about Sh4.72 per unit of electricity consumed in April.
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While the levies have raised concerns among consumers, the Gazette makes clear that they are not new taxes.
Instead, they are part of an existing tariff structure introduced in 2023, which allows EPRA to adjust electricity prices monthly based on changes in fuel costs, exchange rates, and other factors.
Under this system, all additional costs are passed directly to consumers rather than being absorbed by utilities or the government.
The data also highlights deeper challenges in the power sector, including a heavy reliance on expensive diesel generation and exposure to foreign-exchange risk due to dollar-denominated contracts.
With more than 1.3 billion units of electricity generated every month, even small increases in costs can have a significant impact when spread across consumers.
The adjustments are reviewed monthly, meaning electricity prices can continue to rise or fall depending on fuel prices, currency movements and the country’s energy mix.
