- Electricity consumers will pay an additional Sh4.16 per kWh in September 2026 pass-through costs.
- The Fuel Energy Cost accounts for Sh3 per unit, making it the largest component.
- Foreign exchange adjustments add about Sh1.14 per unit.
- A WRMA levy of 1.48 cents per unit completes the three charges.
- A customer using 100 units would incur about Sh416 from the three pass-through costs.
- EPRA has also introduced changes affecting net metering, customer consumption bands and electric vehicle charging.
Households and businesses will face an additional cost on electricity consumed in September after the Energy and Petroleum Regulatory Authority approved new monthly pass-through charges. The combined cost from the three components stands at about Sh4.16 per kilowatt-hour. The charges apply to meter readings taken during September 2026. They are separate from the underlying retail electricity tariff.
The monthly adjustments are designed to account for changes in specific costs within the electricity supply system. EPRA’s tariff framework allows for changes in fuel energy costs, foreign exchange movements and charges linked to water resources. The amount passed on to consumers can therefore vary from one month to another. The additional costs are reflected in the final electricity bill based on the units consumed.
The Fuel Energy Cost (FEC) is responsible for the biggest portion of the September adjustment. EPRA has set the charge at Sh3 per kilowatt-hour, equivalent to 300 Kenya cents per unit. The component is intended to recover fuel expenses incurred when thermal power plants generate electricity.
The amount means customers using more electricity will pay a larger amount through the FEC component. Thermal generation costs are incorporated into the monthly pass-through mechanism rather than the basic retail tariff. The September rate will apply to meter readings taken during the month. It forms the largest single component of the Sh4.16 combined adjustment.
The Foreign Exchange Rate Fluctuation Adjustment (FERFA) will add approximately Sh1.14 for every unit consumed. The charge accounts for the effect of movements in the exchange rate on costs incurred by the electricity sector. EPRA linked the September adjustment to foreign exchange-related costs estimated at about Sh1.32 billion.
The forex component is intended to ensure that changes in exchange-related electricity costs are reflected in monthly consumer charges. Customers therefore bear part of the cost according to their electricity consumption. The September amount will be included alongside the other approved pass-through charges. Its impact will vary depending on the number of units used by each customer.
The third component is the Water Resource Management Authority levy, which has been set at 1.48 cents per kilowatt-hour. The charge is associated with the use of water resources for electricity generation. Hydropower generation is among the activities covered by the water resource-related cost.
Although the levy is much smaller than the fuel and forex charges, it contributes to the overall amount paid by consumers. The three components together add up to approximately Sh4.16 per unit. A household that consumes 100 units in September would therefore incur about Sh416 through these three charges alone. Other applicable components of the electricity bill would be added separately.
EPRA has also made changes affecting customers who generate electricity from renewable sources under the net-metering framework. The arrangement allows eligible customers to send surplus electricity from systems such as rooftop solar installations into the national grid. In return, they receive credits that can be applied against electricity supplied to them by the licensed provider.
Under the applicable rules, exported electricity attracts a credit equivalent to 50 per cent of the units sent to the grid. The system also provides for monthly billing, with eligible exported units taken into account when calculating the customer’s bill. The changes provide a framework for customers who generate some of their own electricity while remaining connected to the grid.
Unapproved electricity exports to be treated as dumping
The revised framework also sets out what happens when electricity is fed into the Kenya Power network without the required approval. Such electricity will be classified as dumping rather than being treated as an authorised net-metering export. The power will be billed at the applicable base tariff.
The provision separates approved renewable energy exports from electricity injected into the network outside the authorised process. Customers seeking to use net metering will therefore need to operate within the applicable requirements. The classification also gives the regulator a basis for dealing with unauthorised electricity supplied to the grid.
EPRA has introduced new categories for domestic electricity customers based on their average consumption over a three-month period. The first category covers customers using up to 30 units. The second applies to those consuming between 30 and 100 units, while the third covers customers using between 100 and 15,000 units.
The new bands are part of wider changes to the electricity tariff framework. The classification will be based on recorded consumption rather than a customer’s estimated usage. The changes are intended to provide a structured basis for applying the relevant tariff provisions. Customers’ electricity use over the three-month period will therefore determine the applicable category.
The revised framework has also introduced a specific electricity tariff for electric vehicle charging. The rate is set at Sh16 per unit during applicable periods. EV owners can access a lower rate of Sh8 per unit when charging during off-peak hours.
The difference between the two rates is intended to encourage charging when demand on the electricity system is lower. The measure also provides a specific pricing framework for the growing electric mobility sector. EV users can therefore reduce their charging cost by using the available off-peak period.
