Electricity consumers will face higher power bills in July after the Energy and Petroleum Regulatory Authority (EPRA) announced a fresh round of tariff adjustments linked to fuel costs, foreign exchange losses, inflation and water resource charges.
The new adjustments include a Fuel Energy Cost Charge of 320 cents per kilowatt-hour (kWh), a Foreign Exchange Fluctuation Adjustment of 148.41 cents per kWh, an Inflation Adjustment of 48 cents per kWh and a Water Resource Management Authority (WRMA) levy of 1.57 cents per kWh.
In a Gazette Notice dated July 12, the charges will reflect in electricity bills for July meter readings, in accordance with the Schedule of Tariffs 2023.
Further, the EPRA’s latest calculations show that fuel-powered electricity generation continued to exert pressure on consumer tariffs despite the significant contribution of geothermal and renewable energy sources.
“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 subject to a fuel energy cost charge of 320 Kenya cents per kWh for all meter readings taken in July, 2026,” part of the Gazette Notice outlined.
Fuel Energy Cost Charge
According to the regulator, the Fuel Energy Cost Charge was derived from electricity generated and purchased in June 2026.
In June 2026, Kenya recorded more than 1.3 billion kWh of energy supplied to the grid excluding the exported units, according to the Authority’s data.
Among the largest thermal generators were the Rabai Diesel Plant and the Kipevu III Diesel Plant, with the Rabai Diesel Plant contributing 41,501,305 kWh from its steam turbine units at a fuel price of 117.86 KSh/Kg.
Further, the Kipevu III Diesel Plant produced 14,356,990 kWh at a fuel price of 119.12 KSh/kg, with Iberafrica Diesel contributing 4,983,950 kWh and Thika Power’s combined units providing over 11.3 million kWh.
Additionally, in June, Olkaria IV contributed 92,790,230 kWh, while Olkaria I Units IV and V added 91,894,900 kWh, with both operating at a steam charge of 2.59 KSh/kWh.
Also Read: EPRA Announces Reduction of Petrol and Diesel Prices for June/July Cycle
Forex Losses Push Up Electricity Bills
EPRA also attributed part of the tariff increase to exchange-rate losses incurred by foreign exchange sector players during June, resulting in a Foreign Exchange Fluctuation Adjustment of plus 148.41 cents per kWh for July 2026 readings.
The sector recorded a total foreign exchange loss of approximately KSh 1.63 billion, with Independent Power Producers accounting for the largest share.
Kenya Power and KenGen also registered forex-related losses, which were incorporated into the adjustment formula approved by the regulator.
During the June period, Kenya Power and Lighting Company (KPLC) accounted for KSh. 558,054,635.48, while KenGen’s portion was relatively smaller at KSh. 65,110,883.39
Revised charges to the forex sector are intended to compensate utilities and generators whose obligations and contracts are partly denominated in foreign currency, according to the Authority.
Also Read: EPRA Gives Way Forward After Withdrawal of New Electricity Tariff
Inflation Adjustment Introduced for Six-Month Period
In addition to fuel and forex charges, consumers will pay an inflation adjustment for the period July to December 2026.
EPRA noted that the adjustment reflects rising operational and power procurement costs across the electricity sector.
The calculation is based on total escalated costs exceeding KSh 3.3 billion, covering Kenya Power, KenGen and Independent Power Producers.
In the KSh 3.3 billion, the cost escalation amounts to KSh 1.64 billion for KPLC, KSh 1.11 billion for Independent Power Producers, and KSh 751 million for KenGen.
A previous under- and over-recovery adjustment was also factored into the formula, amounting to KSh. 156,190,394.96.
EPRA on Hydropower Levy
Consumers will also continue to contribute to water resource management through the WRMA levy, which applies to electricity generated by large hydropower stations.
According to EPRA, the tariff includes a WRMA Levy of an additional 1.57 cents per kWh for July, citing that in June Kenya’s hydro plants generated a total of 345,653,273 kWh.
EPRA clarified that major hydropower facilities, including Kiambere, Gitaru, Turkwel and Kamburu, accounted for a significant portion of the electricity purchased in June and formed the basis for the levy calculations.
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