NAIROBI, Kenya – The government has withdrawn Kenya Power’s tariff review application, halting a proposed electricity price increase for households, businesses, and industries.
In a statement on Wednesday, June 3, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the decision followed consultations between government agencies and key stakeholders in the energy sector.
“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in the sector, the retail electricity tariff review application submitted in March this year by KPLC has been withdrawn,” Wandayi announced.
The move comes as welcome news for consumers who had raised concerns over the proposed tariff adjustments, warning that higher electricity costs would place additional pressure on already strained household budgets and increase the cost of doing business.
Wandayi said the government opted to withdraw the application in a bid to strike a balance between maintaining a sustainable energy sector and shielding consumers from rising costs.
“The decision reflects the need to address a sustainable energy sector while protecting households, businesses, and industries from possible cost escalation,” the CS said.
According to the Cabinet Secretary, keeping electricity prices stable is critical to supporting economic activity, protecting livelihoods, and promoting job creation.
The withdrawal comes just days after the Energy and Petroleum Regulatory Authority (EPRA) announced public participation forums on the proposed tariff review.
Kenya Power had submitted the application on March 31, 2026, seeking a tariff review that would have taken effect from July 1, 2026, through June 2029.
Among the proposed changes was a plan to increase revenue by narrowing the subsidised lifeline consumer category and raising electricity charges for millions of domestic consumers.
The utility sought to reduce the lifeline consumption threshold from 100 kilowatt-hours (kWh) per month to 30 kWh, a move that would have pushed many households into a more expensive billing category.
Under the proposal, customers consuming up to 30 kWh would have continued paying a lifeline tariff of Ksh14 per kWh, while those exceeding the threshold would have been charged Ksh21.68 per kWh under the ordinary domestic tariff.
The proposed rates covered only the base generation tariff and excluded additional charges such as the Fuel Cost Charge (FCC), foreign exchange adjustments, the 16 per cent VAT, and the 5 per cent Rural Electrification Programme (REP) levy.
Wandayi emphasized that any electricity tariff adjustment must comply with legal requirements, including regulatory review and public participation processes before implementation.
Following the withdrawal, he assured consumers that current electricity prices will remain unchanged unless a fresh review is undertaken in accordance with the law.
“The current tariff shall remain in force and unchanged unless lawfully reviewed in accordance with the Energy Act and prescribed procedures,” he added.
The decision means consumers will continue paying existing electricity rates, with no immediate changes to power supply or billing structures.
