Kenya electricity tariffs include adjustments linked to fuel costs and foreign-exchange movements, even though renewable sources generate most of the country’s electricity. Notices in the Kenya Gazette, Volume CXXVIII, No. 179, published on 9 October 2026, show how these adjustments remain part of the system.
This distinction matters. The sources used to generate electricity and the mechanisms used to calculate consumer bills are related, but they serve different purposes.
Renewables continue to dominate Kenya’s electricity generation
In its Energy & Petroleum Statistics Report 2026, the Energy and Petroleum Regulatory Authority (EPRA) reported that renewable sources accounted for approximately 81.13% of Kenya’s electricity generation during the financial year ended 30 June 2026.
The figure highlights the continued importance of geothermal, hydro-power, wind and solar in Kenya’s power sector. However, a high share of renewable generation does not eliminate all exposure to fuel costs and foreign-exchange movements within the electricity-pricing framework.
October gazette carries three electricity-pricing notices
The 9 October gazette carried three notices relating to electricity pricing.
Under Notice 16163, EPRA set the Fuel Energy Cost Charge at 322 Kenya cents per kilowatt-hour (KSh3.22/kWh) for October 2026 meter readings.
Notice 16164 set the Foreign Exchange Fluctuation Adjustment at 87 Kenya cents per kilowatt-hour (KSh0.87/kWh) for September 2026 meter readings.
Notice 16165 set the Water Resources Management Authority (WRMA) levy at 1.34 Kenya cents per kilowatt-hour (KSh0.0134/kWh) for October 2026 meter readings.
EPRA issued the notices under Part III of the Schedule of Tariffs 2023, which provides for periodic adjustments to certain components of electricity tariffs.
The adjustments apply to different billing periods. The foreign-exchange adjustment relates to September meter readings, while the fuel charge and WRMA levy apply to October readings. They should therefore be understood as separate adjustments rather than as a single combined charge.
What do these charges mean for consumers?
For the billing periods covered by the latest gazette notices, the Fuel Energy Cost Charge was set at KSh 3.22 per kWh, while the Foreign Exchange Fluctuation Adjustment was set at KSh 0.87 per kWh. These adjustments form only part of the total electricity tariff, which also includes energy charges, taxes, levies and other approved costs.
For illustration, a household consuming 100 kWh during a billing period in which a fuel charge of KSh 3.22/kWh applied would incur about KSh 322 in fuel-cost adjustments. A foreign-exchange adjustment of KSh 0.87/kWh would add about KSh 87 per 100 kWh consumed when applicable.
Why fuel and foreign-exchange adjustments remain relevant
Electricity tariffs reflect more than the sources used to generate power. They can also include adjustments linked to fuel costs, foreign-exchange movements and other charges provided for under the applicable tariff framework.
Fuel-related charges can therefore remain part of the pricing structure even when renewable sources account for most electricity generation. Foreign-exchange adjustments can also apply when exchange-rate movements affect costs recognized under the tariff framework.
However, the publication of these notices does not, by itself, establish whether renewable generation has reduced electricity costs or how the adjustments affect an individual consumer’s bill. Assessing their impact would require additional evidence, including comparable billing periods, underlying cost data and the other charges that make up electricity bills.
How Kenya electricity tariffs reflect fuel and forex costs
Kenya electricity tariffs reflect more than the sources used to generate power. EPRA’s statistics show where electricity comes from, while its tariff notices specify the charges and adjustments that apply. Neither source alone determines the final amount paid by consumers.
Electricity bills also depend on factors such as consumption levels, the applicable tariff category, taxes, levies and other approved charges.
This distinction helps explain why fuel and foreign-exchange adjustments can still appear in a power system where renewable sources account for most electricity generation. While the generation mix shows where electricity comes from, the tariff framework determines how specified costs and adjustments are reflected in consumer bills.
