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    1.0.32

    Fuel Crisis Spreads to Power Bills: Average Household Faces KSh 708 Extra for Tokens

    Harry
    By Harry Njuguna
    - April 26, 2026
    - April 26, 2026
    Kenya Business newsEnergyMacroeconomics
    Fuel Crisis Spreads to Power Bills: Average Household Faces KSh 708 Extra for Tokens

    Kenya's fuel price shock has reached electricity consumers, with EPRA-gazetted adjustments set to add approximately KSh 4.72 per kilowatt-hour to April power bills on top of the standard base tariff, compounding the cost of living pressure already building at the pump.

    • •The Energy and Petroleum Regulatory Authority published three gazette notices covering April meter readings, combining a Fuel Energy Cost Charge of KSh 3.47 per kWh, a Foreign Exchange Fluctuation Adjustment of KSh 1.2341 per kWh, and a Water Resource Management Authority Levy of KSh 0.0154 per kWh.
    • •Against a base domestic tariff of KSh 15 to KSh 25 per kWh depending on consumption band, the additional KSh 4.72 represents a 20-30% hike above base rates for most households.
    • •The May pricing cycle will reflect cargoes discharged in April, meaning the full weight of the Middle East supply shock is not yet fully captured in either fuel or electricity prices.

    The impact scales with consumption with a low-consumption household on 50 units facing an additional KSh 236. An average household on 150 units will now absorb KSh 708 extra and a mid-to-high household on 300 units facing over KSh 1,400.

    Small businesses on 1,000 units will see bills rise by approximately KSh 4,720. These charges apply to units consumed and do not affect the fixed monthly charge component of Kenya Power bills.

    The Fuel Energy Cost Charge reflects diesel and heavy fuel oil costs at thermal power stations in March 2026. Kenya's off-grid and remote area supply relies heavily on diesel, with EPRA data showing fuel costs at remote stations ranging from KSh 193 to KSh 295 per kilogram in March.

    Kiunga stands at KSh 284.86 and Faza Island at KSh 251.58, meaning remote Kenyans are already paying nearly double the Nairobi pump price per kilogram just to keep their lights on. By contrast, Olkaria geothermal steam costs KSh 2.59 per kWh, underlining Kenya's energy mix vulnerability when diesel-dependent stations carry a disproportionate cost burden.

    The Foreign Exchange Fluctuation Adjustment of KSh 1.2341 per kWh reflects KSh 1.342 billion in currency losses incurred by KenGen, Kenya Power, and independent power producers in March 2026 on dollar-denominated power purchase agreements. Spread across 1.302 billion kWh generated and purchased during the month, that loss translates directly into higher April/May bills. Annualized, currency losses of this scale would exceed KSh 16 billion passed to consumers from exchange rate movements alone.

    The electricity adjustments arrive 2 weeks after E EPRA announced a record gross diesel increase of KSh 40.30 and petrol rise of KSh 28.69, later partially cushioned by a VAT cut from 16% to 8% applied in two steps, leaving net increases of KSh 30.09 on diesel and KSh 19.32 on petrol from the previous cycle. The gazette notices were signed by Dr. (Eng.) Joseph Oketch as Acting Director General, following the arrest of former DG Daniel Kiptoo Bargoria in the ongoing petroleum supply scandal.

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