By Benadeta Mwaura - Reporter
Kenya, 18 November 2025 - Kenyan MPs are urging EPRA to raise electricity tariffs to help Kenya Power recover rural electrification costs, and what this means for consumers, clean energy investment, and the future of Kenya’s power sector.
Why are Kenyans being asked to pay more for electricity again? It came in the form of a letter, not from the government, but from Members of Parliament, urging the energy regulator to increase power prices.
Their argument is simple, on paper: Kenya Power has spent billions building and maintaining the rural electricity grid, but many of those connections aren’t profitable. The National Assembly Committee on Energy now wants consumers (yes, everyday Kenyans) to shoulder more of that cost through monthly power bills starting July 2026.
Why MPs Are Calling for a Tariff Hike
The unpaid charge for rural electrification has ballooned to KSh 29.9 billion as of June 2024.
Kenya Power says many rural homes spend far below the national average on electricity (about KSh 217 per month), making it difficult for the utility to recoup its investments.
Hence, the MPs now want the Energy & Petroleum Regulatory Authority (EPRA) to bake these “pass-through costs” directly into consumer bills.
The Bigger Reform Picture: Power Deals & Price Caps
This isn’t the first time Parliament has intervened in Kenya’s energy sector. In fact, just days ago, MPs lifted a seven-year moratorium on new Power Purchase Agreements (PPAs), a major shift. These PPAs had been frozen pending scrutiny over existing deals.
To protect consumers, MPs are proposing a wholesale price cap of $0.07 (≈ KSh 9) per kWh for new PPAs. This is a safety net, meant to prevent future power contracts from driving up costs too high.
The Cost Burden on Kenyans
For ordinary consumers, the proposed pass-through raises serious concerns. Electricity bills in Kenya are already under pressure from fuel and forex charges: EPRA recently announced adjustments that add KSh 3.69 per kWh for fuel costs, plus KSh 1.54 per kWh from currency fluctuations. Add to this other regulatory levies, and the price bite is real.
If implemented, the MP-led proposal means consumers would not only pay for their own electricity, but also help subsidize the cost of powering remote areas.
Why This Isn’t a Simple
More from Kenya
Strain on Kenya Power’s FinancesKenya Power argues that without this price adjustment, its financial health remains under serious strain. The company invested heavily in rural electrification with the promise that the Treasury would reimburse some of those costs, but delays and non-payment have piled up.
Political Will & Reform PressureMPs are not only pushing for higher prices, they’re demanding more accountability. By lifting the PPA moratorium, they are signaling the need for more transparent and competitive energy procurement. The wholesale cap on PPAs is also part of this effort.
Long-Term Benefit vs Short-Term PainIf executed well, these reforms could help Kenya unlock cheaper, more sustainable power. By renegotiating or capping expensive PPAs and increasing local generation, the country could cut reliance on expensive import and thermal power. Also, Parliament’s energy committee estimates reforms could save Kenyans KSh 6 billion a year if system losses are reduced.
Consumer RiskBut the danger is real: Consumers may bear too much of the cost burden. For low-income households, a rise in power tariffs could squeeze already stretched budgets. Meanwhile, the argument that Kenya Power needs to recover its investment raises a fundamental question: Is it fair to force every user to pay for rural electrification when many may not benefit directly?
Kenya Power’s CEO, Joseph Siror, defended the high pricing, calling it “cost-reflective.” He explained that the rates are structured to ensure a return on investment, particularly for expensive energy technologies such as geothermal.
The Energy Ministry, led by CS Opiyo Wandayi, has also been actively involved, lobbying MPs to lift the freeze on new Power Purchase Agreements (PPAs). The ministry warned that maintaining the restriction could result in electricity shortages, putting the country at risk of power deficits.
On the consumer side, manufacturers have already raised alarms about the potential impact of higher electricity tariffs. They caution that increased costs could reduce the competitiveness of Kenyan industries, making it more difficult for businesses to operate efficiently and maintain market share.
What It Means in the Bigger Picture
This is more than just a protest by MPs or a push by Kenya Power. It’s a crossroads moment for Kenya’s energy sector, one that pits short-term consumer pain against long-term infrastructure stability.
If Parliament’s plan works, Kenya could see wider electricity access, more investment in generation, and smarter PPAs. But for average Kenyans, especially those already struggling with bills, the immediate impact could be biting.
The most important question however is: Who pays for development?Should the cost of rural electrification be borne primarily by utilities and the government, or by every household that draws power?
MPs clearly think the burden should shift, at least in part, to consumers, to make Kenya Power more sustainable. The hope, they say, is that by 2026, a fairer, more resilient electricity system will emerge. But for that to happen, transparency, fairness, and strong regulation will be key.
