Electricity costs declined by Sh0.27 per kilowatt-hour (kWh) in June, offering relief to households and businesses facing rising operational expenses, Energy and Petroleum Cabinet Secretary Opiyo Wandayi has announced.
According to Wandayi, the reduction was driven by a decline in the Foreign Exchange Adjustment component, lower Fuel Energy Costs (FEC), and increased electricity generation from hydropower plants.
The Cabinet Secretary made the remarks following a meeting with representatives from the manufacturing sector, where he reaffirmed the government’s commitment to maintaining affordable and predictable energy costs to support economic growth and industrial competitiveness.
“Our priority as Government is to ensure the long-term sustainability of operations across the energy sector. We are keenly aware that the cost of doing business has a direct impact on competitiveness, investment and livelihoods,” Wandayi said.
“We remain committed to maintaining a stable and predictable environment that supports positive cash flow for industry players, safeguards jobs and preserves confidence in the market.”
The reduction in electricity costs comes as businesses continue to contend with high operating expenses driven by elevated fuel prices and inflationary pressures that have increased production and transportation costs.
To further ease the burden on manufacturers, Wandayi said the government is promoting the Time-of-Use tariff programme, which encourages industries to shift part of their operations to off-peak hours when electricity rates are lower.
The initiative is aimed at improving energy efficiency while helping large power consumers reduce their electricity bills.
The Cabinet Secretary also signaled a possible reduction in diesel prices during the next monthly fuel review, a move that could lower operating costs for transporters, farmers and manufacturers.
“In line with the commitment made by His Excellency the President to the public transport sector and other industry players, the Government will ensure further reduction in diesel prices in the next monthly review, recognising that diesel powers transport, agriculture, manufacturing and the wider economy,” he said.
“Lower diesel prices ultimately translate into lower costs for businesses and greater relief for Kenyan families.”
The remarks come amid growing concerns from manufacturers over rising production costs, particularly following recent increases in global energy prices linked to supply chain disruptions and geopolitical tensions in the Middle East.
Industry stakeholders have repeatedly called for interventions to lower electricity and fuel costs, arguing that affordable energy remains critical to enhancing Kenya’s competitiveness as a manufacturing hub and investment destination.
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