Kenyan households pay significantly more for electricity compared to their East African counterparts, a difference attributed to infrastructure demands and power generation dynamics, according to Foreign Affairs Principal Secretary (PS) Korir Sing’Oei.
Responding on Thursday, April 3, to recent data from the Parliamentary Budget Office, Sing’Oei acknowledged that while Kenya’s electricity costs are the highest in the region, the country also boasts the widest electricity access.
“True, but Kenya also has the highest electricity access rate in the region. The cost of building and maintaining the most extensive electricity infrastructure cannot be ignored,” he stated.
“Yet, there may be inefficiencies that if addressed could perhaps lower the cost of energy.”
How Kenya Compares to the Region
- Kenya: Ksh33 per unit
- Uganda: Ksh22 per unit
- Tanzania: Ksh11 per unit
- Ethiopia: Ksh0.80 per unit
This sharp contrast has sparked public concern and debate over the sustainability and fairness of energy pricing in Kenya.
KPLC Breaks Down the Cost Structure
In a February 2024 statement, Kenya Power and Lighting Company (KPLC) Managing Director Joseph Siror explained that Kenya’s electricity pricing includes multiple components, primarily driven by its diverse power generation mix.
According to Siror, KPLC dispatches electricity from the following sources:
- 40% Geothermal
- 24% Hydro
- 11% Imported power from Ethiopia Electric Power (EEP)
- 17% Wind
- 5% Thermal
- 3% Solar
“There are many components that go into the final cost of electricity. In Kenya, the power generation mix is predominantly green, resulting in competitively priced power compared to other regions,” Siror said.
He noted that improved rainfall patterns had reduced dependence on thermal power, which is traditionally more expensive, enabling the supply of more affordable and environmentally friendly electricity to consumers.
Calls for Efficiency and Transparency
While infrastructure and generation factors explain the baseline cost, PS Sing’Oei hinted at inefficiencies within the energy sector that, if resolved, could bring down electricity tariffs.
The comments have reignited calls for a review of:
- Billing transparency
- Procurement practices
- System losses
- And the role of Independent Power Producers (IPPs)
As households and businesses alike continue to feel the pinch, stakeholders are urging both government and regulators to explore ways to balance access, sustainability, and affordability.
