NAIROBI, Kenya – The government is pushing for a major shake-up in Kenya’s electricity sector, proposing multiple electricity distributors and compensation for consumers affected by power blackouts.
These measures are outlined in the draft National Energy Policy 2025-34, released on Wednesday, as part of broader reforms aimed at ensuring equitable energy transition and efficiency.
If implemented, the policy could introduce competition in electricity distribution, a sector currently monopolized by Kenya Power. The proposal is now open for public participation.
“With over 25 per cent of the population still lacking electricity access, it is crucial that we expand our energy infrastructure and leverage renewable energy resources, including solar, wind, geothermal, and bioenergy, to provide reliable and affordable energy to all corners of the country,” the draft policy states.
The Ministry of Energy argues that opening up the market to multiple retailers will enhance efficiency and ensure optimal use of the existing power distribution network.
The reforms will be anchored on key policies such as open grid access, captive power, net metering, and the power market.
Additionally, the government plans to introduce a wheeling tariff to allow independent power producers to transport electricity through the national grid to their customers.
This is not the first time the government has floated the idea of breaking Kenya Power’s monopoly.
Late last year, Energy Cabinet Secretary Opiyo Wandayi hinted at a policy shift that would allow power producers like KenGen to directly supply electricity to consumers using existing infrastructure.
Another key aspect of the proposed policy is a compensation framework for consumers affected by prolonged power outages.
If approved, electricity distributors will be required to compensate users for losses incurred due to blackouts, a move aimed at improving service reliability and holding power providers accountable.
The draft policy also aligns with Kenya’s green energy agenda, promoting a shift from fossil fuels to cleaner, more sustainable energy sources.
The government hopes these measures will enhance energy security, affordability, and accessibility while driving industrial growth through green energy solutions.
The proposed policy is expected to spark debate among industry players, consumer groups, and policymakers before it is finalized and implemented.
