The government, through the Energy Cabinet Secretary Opiyo Wandayi, has announced a reduction in electricity prices and suspended a planned tariff review, in a move aimed at lowering energy costs for households and businesses.
In a statement issued after consultations with manufacturers, CS Wandayi said electricity costs fell by Ksh0.2685 per kilowatt-hour from June 2026.
The ministry also confirmed that the proposed electricity tariff increase has been put on hold to cushion consumers and support economic activity.
Further, the government said the decision is intended to maintain affordable and reliable energy while protecting jobs and business competitiveness.
“To cushion businesses and, in extension, households, the Government suspended the proposed electricity tariff review. In addition, effective June 2026, electricity costs have reduced by KSh 0.2685 per kWh,” Wandayi said in a statement.
This reduction was attributed to lower foreign-exchange adjustment charges, lower fuel energy costs, and increased hydropower generation.
CS Wandayi Defends Energy Reforms Amid Pressure From Manufacturers
In his statement, Wandayi acknowledged concerns raised by industry stakeholders over rising production costs, cash flow constraints and increasing global competition affecting the manufacturing sector.
He noted that manufacturing remains a key driver of jobs, exports and government revenue, adding that energy policy plays a central role in supporting Kenya’s economic transformation agenda.
“Manufacturing remains a critical driver of jobs, exports and revenue, and we cannot ignore the pressures that rising production costs, cash flow constraints and increasing global competition place on our industries,” he said.
The energy CS said the government’s objective is to ensure energy remains affordable, reliable and sustainable to enhance industrial competitiveness and support growth rather than increase operational pressure on businesses.
He further stated that the government is working with industry players and relevant agencies to improve policy alignment, strengthen the business environment, support job creation and promote exports.
