Rising Energy Demand Signals Growth but Strains Kenya’s Power System

By Peter John

Energy demand in Kenya is rising sharply, driven by economic expansion, increased connectivity and shifting consumption patterns, according to the latest data from the Energy and Petroleum Regulatory Authority (EPRA).

The report paints a picture of a country consuming more electricity and fuel across households, transport and industry—while also grappling with persistent inefficiencies and reliability challenges in the power sector.

Electricity demand grew by 8 per cent in the six months to December 2025, reflecting heightened economic activity and increased usage.

Petroleum demand recorded a similar 8 per cent rise, while liquefied petroleum gas (LPG) consumption surged by 14 per cent, buoyed by the government’s National LPG Growth Strategy.

Power generation kept pace with demand, reaching 7,807 gigawatt hours during the period. The increase has been supported by continued expansion of the national grid and a growing consumer base.

Renewable energy continues to dominate Kenya’s power mix, with geothermal leading generation, followed by hydro, wind and solar.

Nearly 79 per cent of electricity supplied came from renewable sources, underscoring the country’s position as a regional leader in clean energy.

However, demand pressures are mounting. Peak electricity demand hit a record 2,439 megawatts in December, highlighting growing strain on existing infrastructure.

Despite the rising demand, electricity tariffs remained relatively stable. Domestic consumers paid between approximately KSh 25 and KSh 28 per unit, while industrial users benefited from slightly lower rates depending on their voltage category.

A notable shift is emerging in the transport sector, where electricity consumption linked to electric mobility—including electric vehicles and motorcycles—jumped by more than 150 per cent.

The surge points to accelerating adoption of e-mobility solutions, albeit from a low base.

Even so, structural challenges persist. System losses remained high at 22 per cent—well above regulatory targets—pointing to inefficiencies in transmission and distribution.

Power reliability also remains a concern, with consumers experiencing an average of more than eight hours of outages each month.

At the same time, regional energy trade is gaining momentum. Electricity imports from Ethiopia and Uganda rose by nearly 25 per cent, reflecting increased cross-border integration aimed at stabilising supply.

While Kenya’s growing energy demand signals economic progress, the EPRA report highlights the urgent need for investment in infrastructure, improved efficiency and enhanced reliability to sustain future growth.