Explainer: How EPRA’s new electricity bill will affect households and businesses
Electricity consumers across Kenya are set for higher power bills in June 2026 following new monthly tariff adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA).
The changes will apply to all electricity consumed during June meter readings and will immediately raise costs for both households and businesses.
EPRA’s new pricing structure introduces three key charges: a forex fluctuation charge of Ksh0.7154 per kilowatt-hour (kWh), a fuel energy cost charge of Ksh3.14 per kWh, and a Water Resource Management Authority levy of Ksh0.0142 per kWh.
Combined, these add about Ksh3.87 to every unit of electricity used, making power significantly more expensive for consumers.

For households, the impact will be felt through higher token purchases for prepaid meters and increased monthly bills for postpaid customers. Even low-usage homes will notice a difference, especially as lighting, cooking, and basic appliance use become more costly.
The rise adds pressure to already strained household budgets, where electricity is a key utility alongside rent, food, and transport.
Businesses are expected to feel an even stronger effect. Small and medium-sized enterprises such as salons, retail shops, cyber cafés, bakeries, and welding workshops depend heavily on electricity for daily operations.
Higher unit costs will increase operating expenses, potentially forcing some businesses to adjust prices for goods and services to maintain profit margins. Energy-intensive industries, including manufacturing and hospitality, may also see a notable rise in monthly overheads.

EPRA says the adjustments are necessary to recover about Ksh779 million in foreign exchange losses recorded across the power sector in the past month. Independent Power Producers accounted for the largest share at Ksh663 million, while the Kenya Power and Lighting Company (KPLC) reported Ksh85 million and the Kenya Electricity Generating Company (KenGen) recorded Ksh31 million.
The forex charge reflects the fact that many power purchase agreements are denominated in foreign currencies, mainly the US dollar. As exchange rates fluctuate, the additional costs are passed directly to consumers through monthly bills and token purchases.
The fuel energy cost charge is tied to the rising cost of running thermal power plants and imported electricity. Diesel-powered generation remains expensive, and these costs are incorporated into the tariff structure.
Meanwhile, hydropower stations such as Gitaru, Kamburu, Kiambere, Kindaruma, Masinga, Turkwel, and Sondu Miriu contribute to the Water Resource Management Authority (WRMA) levy, which funds water resource management linked to electricity production.
Although each charge appears small on its own, their combined effect significantly increases the overall cost of electricity. The Water Resources Authority (WRA) levy adds a further, albeit minor, component to the total bill, reinforcing the upward pressure on power prices.
Overall, the new EPRA adjustments mean higher electricity costs for nearly all Kenyan households and businesses in June 2026, with ripple effects likely to be felt in the broader cost of living and doing business.














