By Andrew Kariuki
Kenyans are set to pay more for electricity after the Energy and Petroleum Regulatory Authority (EPRA) announced new additional charges that will increase the cost of power consumed in May 2026.
In a new notice, EPRA introduced a combination of fuel, forex and water levies that together will add approximately Ksh4.72 per kilowatt hour to electricity bills on top of the normal tariff rates.
Among the new charges is a Foreign Exchange Fluctuation Adjustment of 110.33 cents per kilowatt hour, which translates to slightly over Ksh1 for every electricity unit consumed.
According to EPRA, the forex surcharge is meant to recover exchange rate losses incurred by Kenya Power, KenGen and independent power producers operating under dollar-denominated agreements and loans.
The authority stated that power producers recorded more than KSh1.17 billion in foreign exchange losses in April 2026 alone, costs that are now being passed to consumers through the monthly adjustment mechanism.
Consumers will also pay a Fuel Energy Cost Charge of Ksh3.06 per kilowatt hour linked to the rising cost of diesel and thermal power generation.
The regulator noted that fuel prices for thermal stations in some remote parts of the country surged sharply in April, with diesel prices in areas such as Habaswein reportedly reaching Ksh306.73 per kilogram.
Northern counties including Turkana, Wajir, Garissa, Mandera and parts of Lamu are among the areas heavily affected due to continued reliance on diesel-powered electricity generation.
EPRA further announced a Water Resource Management Authority levy tied to hydroelectric power generated from major dams under the Seven Forks scheme along the Tana River.
The levy applies to electricity generated from hydro stations such as Gitaru and Masinga and is intended to support water resource management activities.
The new electricity charges come at a time when Kenyans are already grappling with record-high fuel prices following the latest review by EPRA that saw Super Petrol increase by Ksh16.65 per litre and Diesel rise by Ksh46.29.
Under the current pricing cycle, Super Petrol in Nairobi is retailing at Ksh214.25 per litre while Diesel now costs Ksh242.92.
The latest electricity adjustments are expected to further increase pressure on households, small businesses and manufacturers already struggling with the rising cost of living and transport disruptions triggered by nationwide protests over fuel prices.
New adjustments gazetted by the Energy and Petroleum Regulatory Authority (EPRA) are set to add approximately Ksh4.72 per kilowatt-hour on electricity consumed in April, pushing up monthly bills for both households and businesses.
The additional charges arise from a combination of a Fuel Energy Cost Charge of Ksh3.47 per kWh, a Foreign Exchange Fluctuation Adjustment of Ksh1.2341 per kWh and a Water Resource Management Authority Levy of Ksh0.0154 per kWh.
For many consumers, the increase represents an estimated 20 to 30% jump above normal electricity rates depending on household consumption levels.
Under the new pricing structure, a household consuming 50 units is expected to pay about Ksh236 extra, while an average family using 150 units could spend an additional Ksh708 on tokens. Homes consuming around 300 units may now pay more than Ksh1,400 extra.
Small businesses are also expected to feel the pressure, with enterprises consuming around 1,000 units projected to absorb nearly Ksh4,720 in extra electricity costs.
The new charges only apply to electricity consumed and do not affect the fixed monthly charges on Kenya Power bills.
According to EPRA data, the Fuel Energy Cost Charge reflects the rising cost of diesel and heavy fuel oil used in thermal power generation during March 2026.
Remote and off-grid regions continue to rely heavily on diesel-powered electricity generation, with fuel costs in some stations reportedly ranging between Ksh193 and Ksh295 per kilogram.
In areas such as Kiunga and Faza Island, fuel costs have risen sharply, highlighting Kenya’s continued vulnerability to global fuel price shocks despite increased investment in geothermal power.
The Foreign Exchange Fluctuation Adjustment, meanwhile, reflects more than KSh1.3 billion in currency-related losses incurred by power producers and distributors due to dollar-denominated agreements.
The electricity price adjustments come just weeks after EPRA announced sharp increases in pump prices, triggering nationwide protests and a transport sector strike over the rising cost of fuel.
Energy analysts now warn that the full impact of the Middle East supply disruptions may not yet have been fully reflected in both fuel and electricity pricing, raising fears that consumers could face even higher costs in the coming months.
