Kenya had the highest electricity prices for businesses in June 2024, according to the Kenya Economic Report 2025 by KIPPRA.
The cost per kilowatt-hour (KWh) in Kenya exceeded US$0.18, surpassing prices in countries like the United States, India, and Uganda.
Businesses in the USA paid around US$0.15 per KWh, while Uganda and India recorded costs of approximately US$0.12 per KWh. Bangladesh and South Africa had slightly lower rates at about US$0.10 and US$0.096 per KWh, respectively.
Tanzania and China were also lower, with costs ranging between US$0.085 and US$0.088 per KWh.
Rwanda, Egypt, and Ethiopia had the lowest electricity rates among the countries listed, with Ethiopia recording the lowest at roughly US$0.015 per KWh.
High electricity costs can significantly impact businesses, increasing operational expenses and affecting competitiveness.
For local companies in Kenya, this trend emphasises the importance of energy efficiency measures and exploring alternative energy sources, such as solar or wind, to reduce reliance on grid electricity.
The Kenya Economic Report 2025 highlights that electricity pricing remains a key factor influencing investment decisions and business growth.
Comparisons with other nations reveal the potential for cost optimization strategies to strengthen Kenya’s economic environment and improve the sustainability of business operations across sectors.
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