The Energy and Petroleum Regulatory Authority (EPRA) approved several Power Purchase Agreements (PPAs) for the year ending June 30, 2025.
In its Energy and Petroleum Statistics Report released on September 30, EPRA noted that these agreements are critical in stabilizing electricity costs by locking in prices over the duration of the contracts.
Hence, protecting both power producers and consumers from sudden market fluctuations.
“A PPA is a contract between power generators and the offtaker that defines the terms for selling electricity, including the amount of power and its cost. PPAs are essential for providing long-term price stability by setting a fixed electricity price for the duration of the contract. This stability safeguards both generators and consumers by reducing the risks associated with market price fluctuations,” read part of the report.
EPRA stated that the agreements were made to strengthen the electricity supply and ensure long-term price stability for consumers.
During the review period, EPRA approved multiple contracts, including:
- An energy exchange agreement between KPLC and Tanzania Electric Supply Company (TANESCO).
- A power purchase agreement between KPLC and Oropower Twenty-Two Limited.
- The 3rd Supplemental Agreement to the existing PPA between KPLC and KenGen for isolated thermal, small hydro, and wind power plants.
- An Energy Exchange Agreement between KPLC and Uganda Electricity Transmission Company Limited (UETCL).
- A PPA between Chania Power Company (Seller), Kenya Tea Development Agency (Sponsor), and KPLC (Buyer).
- A PPA between Metumi Power Company (Seller), KTDA Power Company (Sponsor), and KPLC (Buyer).
- A PPA between Nyakwana Power Company (Seller), KTDA Power Company (Sponsor), and KPLC (Buyer).
- PPA appeals between KPLC and KenGen covering isolated thermal, wind, and small hydro plants.
- A Wheeling Agreement between Kenya Electricity Transmission Company Limited (KETRACO) and TANESCO.
EPRA noted that these agreements will help improve cross-border power trade, diversify Kenya’s energy mix, and support the integration of renewable energy sources into the national grid.
The move is expected to enhance energy security, reduce reliance on expensive emergency power options, and promote regional cooperation in electricity supply.
Also Read: EPRA Shuts Down 12 Petrol Stations Selling Fake Fuel
EPRA Releases Approved Electricity Tariffs for 2024/25
At the same time, the report outlined approved new electricity tariffs for the 2024/25 financial year.
The tariffs, which took effect on April 1, 2023, aimed to balance cost recovery for utilities while ensuring affordability for consumers.
According to EPRA, the approved tariffs covered domestic households, small commercial users, electric mobility, industrial consumers, and street lighting.
Also Read: EPRA Sets Timeline to Control Cooking Gas Prices
Electricity Retail Tariffs (FY 2024/25)
| Customer Category | Voltage | Energy Limit (kWh/month) | Base Tariff (Ksh) | Demand Charge (KSh) |
|---|---|---|---|---|
| Domestic | 240/415 V | 0–30 | 12.23 | 0 |
| 30–100 | 16.54 | 0 | ||
| >100 | 19.08 | 0 | ||
| Small Commercial | 240/415 V | 0–30 | 12.23 | 0 |
| 30–100 | 16.34 | 0 | ||
| >100 | 19.40 | 0 | ||
| Electric Mobility | 240/415 V | 200–15,000 | 16.00 | 0 |
| Commercial/Industrial | 415 V | >15,000 | 13.74 | 1,100 |
| 11,000 V | No limit | 12.44 | 700 | |
| 33,000 V | No limit | 11.92 | 370 | |
| 66,000 V | No limit | 11.68 | 300 | |
| 132,000 V | No limit | 11.40 | 300 | |
| 220,000 V | No limit | 10.00 | 200 | |
| Street Lighting | 240/415 V | No limit | 9.23 | 0 |
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