Inside Kenya’s power crisis as outages rise and losses grow
By Aloys Michael, April 9, 2026Kenya is producing more electricity than ever before, but losing a significant share of it in the process, exposing deep cracks in a system struggling to keep pace with economic growth.
According to the latest biannual energy statistics report by the Energy and Petroleum Regulatory Authority (EPRA), electricity demand rose by 8.25 per cent in the second half of 2025, reflecting expanding industrial activity, population growth, and increased connectivity.
Yet beneath this progress lies a troubling reality: inefficiencies, outages, and system losses are quietly draining billions from the economy.
The report reveals that 22.07 per cent of electricity purchased was lost during transmission and distribution, far above the regulator’s 16.5 per cent allowable threshold. These losses, which include both technical inefficiencies and commercial issues such as illegal connections and meter tampering, represent a major structural weakness in Kenya’s power system.
“System losses refer to electrical energy generated but lost during transmission and distribution, including unbilled energy from illegal connections, unmetered supply and meter tampering,” the report released on Wednesday, April 8, 2026, notes.
At the same time, reliability remains a major concern. Kenyan consumers experienced an average of 8.39 hours of power outages per month, far exceeding the regulator’s target of 1.5 hours. While this marks a slight improvement from the previous year, it still signals a grid under strain.
For businesses, particularly small and medium enterprises (SMEs), the impact is immediate and costly.
In Nairobi’s industrial areas, frequent outages disrupt production schedules, damage equipment, and force firms to rely on expensive diesel generators. For many, the cost of backup power erodes already thin profit margins, raising questions about Kenya’s competitiveness as a manufacturing hub.
Even as outages persist, electricity tariffs remain relatively stable, influenced by global fuel costs, exchange rates, and inflation. For households, this means paying for a service that is not always dependable.
The report warns that the combination of rising demand and persistent inefficiencies could undermine Kenya’s economic ambitions.
With GDP growth at 4.9 per cent and electricity demand closely tied to economic expansion, a fragile grid poses risks to investment, industrialisation, and job creation.
Is there hope?
The report also highlights infrastructure and operational challenges contributing to the crisis. Ageing transmission lines, limited grid capacity, and uneven distribution networks continue to constrain efficiency.
Meanwhile, the rapid expansion of connections, with over 182,000 new customers added in just six months, puts additional pressure on an already stretched system.
Despite these challenges, EPRA says there are signs of progress. System losses declined slightly from 24.08 per cent in the previous year, and outage durations have improved marginally. However, analysts argue that incremental gains are not enough.
The government and regulators now face a critical question: can Kenya fix its grid fast enough to sustain its growth?
Reducing system losses alone could unlock significant economic value, effectively “creating” electricity without building new power plants.
Similarly, investments in grid modernisation, smart metering, and enforcement against illegal connections could improve reliability and reduce waste.