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EPRA introduces new charges that will raise electricity bills

EPRA introduces new charges that will raise electricity bills
Power lines in the station. PHOTO/facebook.com/KenyaPowerLtd

The Energy and Petroleum Regulatory Authority (EPRA) has announced new adjustments that will raise electricity costs for consumers in April 2026.

The changes were published in Gazette Notices Nos 6002 and 6003 and will apply to all meter readings taken during the month.

EPRA has introduced three separate charges: a Fuel Energy Cost Charge (FECC), a Foreign Exchange Fluctuation Adjustment, and a water-related levy linked to hydropower generation. Together, they will push up the cost of every unit of electricity consumed.

EPRA Acting Director-General Joseph Oketch confirmed the changes in the official notice.

“All prices for electrical energy specified in the Schedule of Tariffs will be liable to a Fuel Energy Cost Charge of plus 347 Kenya cents per kWh for all meter readings taken in April 2026,” he stated.

The fuel charge is the highest of the three. EPRA said it reflects the cost of running diesel, gas, and other thermal plants that support the national grid when cheaper sources like hydro and geothermal are not enough.

The charge is based on fuel prices recorded in March 2026 across multiple power stations, including Kipevu, Rabai, Thika Power, Iberafrica, and several off-grid diesel plants in northern Kenya.

Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital
Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital

The second charge is the Foreign Exchange Fluctuation Adjustment, which adds 123.41 cents per kilowatt-hour. EPRA said the charge comes from exchange rate losses recorded by power producers and distributors. The authority noted that the total forex loss stood at more than Ksh 1.3 billion in March 2026.

According to the notice, KenGen recorded gains of Ksh14.26 million, Kenya Power reported Ksh453.2 million, while Independent Power Producers (IPPs) accounted for the largest share at Ksh874.78 million. These figures were calculated against more than 1.3 billion units of electricity generated and purchased during the month.

Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital
Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital

The third charge is a water-related levy set at 1.54 cents per kilowatt-hour. It applies to electricity generated from major hydropower stations. EPRA said the levy is tied to the Water Resource Management Authority framework and affects plants such as Gitaru, Masinga, Kiambere, Kindaruma, Turkwel, Sondu Miriu, and Sangoro, which together supplied over 334 million units of electricity in March.

Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital
Part of the gazette notice on the changes. PHOTO/Screengrab by People Daily Digital

Off-grid areas hardest hit

Consumers in off-grid areas will feel the highest impact. Many of these regions depend on diesel plants, where fuel costs are far higher than in the main grid. Stations in places such as Mandera, Wajir, Marsabit, Turkana, and Lamu recorded some of the highest generation costs due to fuel transport and limited infrastructure.

In contrast, households connected to geothermal sources like Olkaria will face relatively lower pressure. EPRA said the changes reflect real market conditions.

“These adjustments are necessary to align electricity prices with the actual cost of generation and foreign exchange movements,” the authority noted.

The three charges combined will increase the final electricity bill for households and businesses with the fuel charge having the greatest impact on consumers.

Author

Kenneth Mwenda

Kenneth Mwenda is a business, sports, and politics digital writer with over seven years of experience in journalism, covering breaking news, feature stories, and in-depth analysis across a range of beats.

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