CS Wandayi Announces Electricity Price Cut as Government Moves to Ease Cost of Living Pressure
Kenyans are set to benefit from lower electricity bills after the government announced a reduction in power costs for the June 2026 billing cycle, offering relief to households and businesses grappling with rising living expenses.
In a statement issued on Wednesday, June 10, Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that electricity prices will decrease by Ksh0.2685 per kilowatt-hour (kWh), effective immediately for the June review period.
The reduction comes barely a month after consumers were hit with higher power bills, sparking public outrage and renewed debate over the cost of energy in the country.
According to Wandayi, the latest adjustment has been driven by improved electricity generation from hydropower sources, lower fuel costs used in power production, and a significant decline in foreign exchange-related charges that are often passed on to consumers.
“Effective June 2026, electricity costs have reduced by Ksh0.2685 per kWh,” Wandayi said.
“This reduction is driven by a significant drop in the Forex Adjustment component, a decrease in the Fuel Energy Cost (FEC), and increased hydropower generation,” he added.
The Cabinet Secretary described the move as part of the government’s broader efforts to cushion consumers and improve the competitiveness of Kenya’s economy by lowering energy costs.
The announcement follows a high-level engagement between the Ministry of Energy and Petroleum and the Kenya Association of Manufacturers (KAM), where industry players raised concerns over the impact of rising electricity costs on production and business operations.
Manufacturers have repeatedly warned that expensive power tariffs increase the cost of doing business in Kenya, making locally produced goods less competitive both regionally and internationally.
The latest reduction is expected to provide welcome relief to households that have complained about unusually high electricity bills in recent months.
In May 2026, the Energy and Petroleum Regulatory Authority (EPRA) increased electricity charges by Ksh1.10 per kWh, attributing the rise to foreign exchange losses incurred by power producers.
EPRA disclosed that electricity generators recorded exchange-rate-related losses amounting to Ksh1.17 billion in April 2026, costs that were subsequently reflected in consumer tariffs.
The increase triggered widespread criticism from consumers, many of whom argued that power bills had become increasingly difficult to manage amid broader economic pressures.
Following public concerns, the Ministry of Energy intervened and halted a proposed tariff review application by Kenya Power that could have led to even steeper electricity costs for millions of consumers.
Under the proposal submitted in March 2026, Kenya Power sought to revise its pricing structure by reducing the number of consumers eligible for subsidised electricity rates and increasing base power charges.
One of the most controversial proposals involved lowering the lifeline consumption threshold from 100 kWh per month to just 30 kWh.
Had the proposal been approved, households consuming more than 30 kWh per month—equivalent to slightly over one unit of electricity per day—would have been shifted from the subsidised category to the more expensive domestic tariff band.
Consumers using up to 30 kWh would have paid Ksh14 per unit, while those exceeding the threshold would have faced charges of Ksh21.68 per kWh.
The proposed changes attracted sharp criticism from consumer groups and energy stakeholders, who argued that they would disproportionately affect low- and middle-income households already struggling with rising living costs.
Wandayi reiterated that affordable and reliable electricity remains a key pillar of the government’s economic transformation agenda.
He noted that continued investment in electricity generation, transmission networks, and distribution infrastructure will be essential in ensuring long-term energy security while maintaining stable and affordable power prices for consumers.
The latest reduction, though modest, signals the government’s intention to keep electricity costs under control amid growing concerns over household expenses and the competitiveness of Kenyan businesses.
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