Kenyans face higher electricity bills this January following a series of adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA).
The changes, effective for all meter readings in January 2026, combine fuel costs, foreign exchange fluctuations, inflation, and regulatory levies, resulting in a total increase of approximately Ksh5.52 per kilowatt-hour (kWh) and applying across the entire national grid.
According to EPRA, the Fuel Energy Cost Charge (FEC) has been set at Ksh3.26 per kilowatt-hour (kWh). This adjustment reflects the rising cost of fuel used in thermal power generation.
“PURSUANT to Clause 1 of Part III of the Schedule of Tariffs 2023, notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of plus 326 Kenya cents per kWh for all meter readings to be taken in January, 2026,” read the notice by EPRA Director General Daniel Kiptoo.
EPRA applies adjustments for January 2026 electricity bills
In addition, the authority said that the Foreign Exchange Fluctuation Adjustment (FXA) is Ksh1.785 per kWh, compensating power producers for losses incurred due to a depreciating Kenyan shilling.
Consumers will also pay a KSh0.46 per kWh inflation adjustment and a KSh0.0138 per kWh levy for the Water Resource Management Authority (WRMA), which supports sustainable water use in hydropower generation. The combined effect of these surcharges amounts to roughly Ksh5.52 per kWh added to the base tariff.
Also Read: EPRA Reduces Fuel Prices for January and February Cycle
The adjustments affect both household and commercial electricity consumers. For example, the average household consuming 250 kWh per month can expect a bill increase of approximately Ksh1,380, while small and medium-sized enterprises relying on 2,000 kWh per month may face an additional cost of around Ksh11,040.
EPRA further noted that major electricity producers contributing to the national supply include thermal plants such as Kipevu III Diesel, Rabai Diesel, Muhoroni GT, and Thika Power, as well as hydropower stations like Kiambere, Gitaru, and Turkwel. Imported electricity from the Uganda Electricity Transmission Company Limited (UETCL) also feeds into the grid.
Electricity generation
Overall, more than 1.27 billion kWh of electricity was generated or purchased in December 2025 to meet nationwide demand. The EPRA adjustments apply uniformly across all these sources, ensuring that every consumer feels the impact.
Also Read: Quick Steps to Confirm Your Kenya Power Meter Reading Matches Your Bill
The increase is driven primarily by the FEC and the Foreign Exchange Adjustment, with the latter reflecting a total exchange loss of over Ksh1.9 billion incurred by the Kenya Electricity Generating Company (KenGen), Kenya Power, and Independent Power Producers (IPPs) in December 2025 exclduing exports. Inflation and WRMA levies also contribute to the overall rise in the cost per unit of electricity.
EPRA’s notices also highlight plant-specific variations, with the authority reporting that thermal stations such as Baragoi and Mandera experienced significant increases in fuel charges, while Takaba and Kiunga saw notable reductions.
Hydropower plants that generated over 293 million kWh are subject to the WRMA levy as part of their contribution to sustainable water management.
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