NAIROBI — The Kenyan government has withdrawn a proposed review of electricity tariffs that could have increased power costs for millions of households and businesses, offering a reprieve at a time when many families are grappling with the rising cost of living.
The decision, announced on Wednesday by Energy and Petroleum Cabinet Secretary Opiyo Wandayi, halts an application submitted by Kenya Power earlier this year seeking adjustments to retail electricity tariffs over the next three years.
"Following consultations within government and key stakeholders in the sector, the retail electricity tariff review application submitted in March this year by KPLC has been withdrawn," Mr Wandayi said in a statement.
The announcement follows weeks of public concern over proposals that would have altered how electricity charges are calculated, particularly for lower-income households that benefit from subsidised rates.
According to the Energy Ministry, the withdrawal was intended to strike a balance between maintaining a financially sustainable energy sector and shielding consumers from higher electricity bills.
"The decision reflects the need to address a sustainable energy sector while protecting households, businesses, and industries from possible cost escalation," Mr Wandayi said.
The proposed review had been submitted by Kenya Power on March 31 and was expected to take effect from July 2026 through to June 2029, subject to regulatory approval.
One of the most contentious aspects of the proposal involved changes to the subsidised lifeline tariff. Kenya Power had sought to lower the monthly consumption threshold for discounted electricity from 100 kilowatt-hours to 30 kilowatt-hours.
Had the proposal been approved, households consuming more than roughly one unit of electricity per day would have moved into a higher-priced category.
Under the plan, consumers using up to 30 kilowatt-hours each month would have paid KSh14 per unit, while those exceeding that threshold would have been charged KSh21.68 per unit under the standard domestic tariff.
The proposed rates covered only the base electricity charge and did not include additional costs that often appear on monthly bills, including fuel cost adjustments, foreign exchange fluctuations, value-added tax and rural electrification levies.
The decision to withdraw the application came shortly after the Energy and Petroleum Regulatory Authority (EPRA) had initiated public participation processes on the proposed review.
For businesses, manufacturers and households already facing pressure from inflation and higher operating costs, the announcement is likely to be welcomed.
Mr Wandayi said keeping electricity costs stable would support economic activity, help preserve jobs and protect livelihoods.
He also emphasised that any future tariff changes would have to follow legal procedures outlined under the Energy Act, including technical evaluations and public consultations.
"The current tariff shall remain in force and unchanged unless lawfully reviewed in accordance with the Energy Act and prescribed procedures," he said.
The Cabinet Secretary added that the withdrawal of the application would not affect electricity supply across the country.
While the decision pauses a potentially controversial tariff adjustment, it also highlights the challenge facing policymakers: balancing affordable electricity for consumers with the financial demands of maintaining and expanding Kenya's energy infrastructure.
For now, households and businesses can expect their electricity tariffs to remain unchanged as the government reassesses its approach to the sector's long-term sustainability.