More shocks for Kenyans as state signals hike in electricity costs

Kenyans could soon face higher electricity bills after the government admitted that power tariffs may increase.

This is even as it sought to reassure consumers that the adjustment would be minimal.

Energy Principal Secretary Alex Wachira told MPs that while a review of electricity costs is inevitable, the government is taking steps to cushion households and businesses from a steep hike.

The PS, however, maintained that any increase would be marginal and justified by prevailing economic conditions in the energy sector.

“Regarding the issue of costs of energy, yes, in your bill there is a fuel energy charge, and I took my time to explain to you what we are doing as a state department and as a ministry to ensure the hike that you might see is marginal,” Wachira said.

“Diesel is the only area where we have had significant change and because of the spread-through cost across, the marginal costs that Kenyans are going to see on their power bills are marginal.”

The PS was responding to questions by MPs Wilberforce Oundo (Funyula) and Marianne Kitany (Aldai) on whether pump prices will affect the cost of electricity.

“I just received an SMS here from a concerned Kenyan. The ordinary electricity bills have a matter of fuel component. When you look at the electricity bill, there is a fuel component. To what extent are Kenyans likely to be hit? Just tell them the truth, and nothing else but the truth, and the truth shall set you free,” Oundo said.

Wachira said the government has rolled out a series of interventions aimed at stabilising electricity prices, including efforts to diversify energy sources and reduce reliance on expensive thermal power.

The government, he noted, is ramping up power generation from hydropower and geothermal, which will use little Heavy Fuel Oil (HFO) and diesel.

The PS appeared before lawmakers a day after Kenyans were hit with one of the sharpest increases in local pump prices in recent months, compounding concerns over the rising cost of living.

The Energy and Petroleum Regulatory Authority on Tuesday announced fuel prices for the April–May cycle, indicating a sharp increase in pump prices across the country amid rising global oil costs.

“We have calculated the maximum retail prices of petroleum products which will be in force from April 15, 2026, to May 14, 2026,” EPRA said in a statement.

Under the latest review, the price of super petrol increased by Sh28.69 per litre, while diesel rose by Sh40.30 per litre. The price of kerosene remained unchanged.

In Nairobi, motorists will now pay Sh206.97 per litre of super petrol, Sh206.84 for diesel and Sh152.78 for kerosene, marking a steep jump from the previous cycle.

In Mombasa, pump prices will stand at Sh203.69 for super petrol, Sh203.56 for diesel and Sh149.49 for kerosene, maintaining slightly lower rates compared with inland towns due to proximity to the port.

In Kisumu, petrol will retail at Sh209.00 per litre, diesel at Sh208.87 and kerosene at Sh154.81, reflecting higher transport and distribution costs to western Kenya.

In Nakuru and surrounding towns, prices will remain elevated, with petrol retailing at about Sh209 per litre, diesel at about Sh208 and kerosene at about Sh154.

The back-to-back shocks have heightened public anxiety, with MPs warning that additional electricity costs could further strain households already grappling with high fuel and food prices.

During the session, legislators also accused the Energy ministry of politicising rural electrification programmes.

Several MPs claimed that trucks delivering electricity poles are often withdrawn shortly after high-profile project launches, leaving communities without actual connections.

“We are concerned because after launching the projects, the contractors disappear. They even dig the holes for the posts, for mounting the posts, then they disappear. And it is a real concern in Western Kenya, especially Busia, Vihiga and Siaya,” Teso South MP Mary Emase said.

“You go somewhere, when the President is visiting, you mobilise all trucks of REREC and all trucks of the agency to show the public that there is some work and then, as you take off in your choppers, the trucks also take off,” added Lugari MP Nabii Nabwera.

Wachira dismissed the allegations, insisting that electrification projects are guided by technical planning and budgetary allocations rather than political considerations.

He assured the House that the government remains committed to expanding electricity access across the country in a transparent and sustainable manner.

This was even as business leaders warned that the price hikes would make Kenya uncompetitive.

Kenya Association of Manufacturers CEO Tobias Alando said the fuel charge (which is Sh3 per kilowatt-hour) will definitely go up.

“The fuel cost component in the cost of electricity is also expected to go up from the current Sh3.57 per kWh,” the KAM boss said in a statement.

He added; “The increase in fuel prices is expected to further drive up the cost of production for manufacturers, resulting in more pain for consumers who are already struggling to make ends meet.”

Kiharu MP Ndindi Nyoro said taxes were to blame for the price hikes, dismissing the reduction of VAT by three per cent as a ‘dry joke’.

“Fuel products must be VAT-exempt during the intervening period. The government must immediately revert the VAT to eight per cent as it was before 2023,” he said.

The former Budget Committee chairman further asked the Ruto team to reduce the Sh7 from the fuel levy, reduce VAT by a further five per cent, and grant Sh5 billion more in subsidy.

He argued that with the move, the current prices would reduce by Sh27 per litre. “This is not too much to ask,” the lawmaker said, restating that it would mean a return to the pre-2023 tax regime.

A lobby operating as Green Kenya Congress demanded transparency on how the fuel subsidies are used.

“For too long, fuel subsidies drained billions from our national treasury, money that should be building hospitals in Turkana, roads in Kisumu, and schools in Meru. That era of financial irresponsibility must end.”

INSTANT ANALYSIS

Fuel prices have a significant bearing on the cost of electricity. The PS told MPs that the government has introduced several interventions to ensure that Kenyans are not heavily affected by the new adjustments.