Kenyans will have to dig deeper into their pockets to pay for electricity in July 2026 after the Energy and Petroleum Regulatory Authority (EPRA) approved a series of monthly adjustments that add about Ksh5.18 per kilowatt-hour to electricity charges.
In a Gazette Notice dated July 10, 2026, the regulator announced that the increase will be mainly driven by higher fuel costs, foreign exchange losses, inflation pressures and water resource levies.
The new adjustments include a Fuel Energy Cost Charge of 320 cents per kilowatt-hour (kWh), a Foreign Exchange Fluctuation Adjustment of 148.41 cents per kWh, an Inflation Adjustment of 48 cents per kWh and a Water Resource Management Authority (WRMA) levy of 1.57 cents per kWh.
These charges will reflect in electricity bills for July meter readings, in accordance with the Schedule of Tariffs 2023.
Fuel Energy Cost Charge - The Biggest Culprit
The Fuel Energy Cost Charge is the largest component of the new adjustments, rising to Ksh3.20 per unit. According to the regulator, this charge was derived from electricity generated and purchased in June 2026.
In June 2026, Kenya recorded more than 1.3 billion kWh of energy supplied to the grid excluding the exported units, according to the Authority's data.
The charge reflects the cost of electricity generated using fuel-powered plants. Among the largest thermal generators were the Rabai Diesel Plant and the Kipevu III Diesel Plant.
The Rabai Diesel Plant contributed 41,501,305 kWh from its steam turbine units at a fuel price of 117.86 KSh/Kg. Further, the Kipevu III Diesel Plant produced 14,356,990 kWh at a fuel price of 119.12 KSh/kg, with Iberafrica Diesel contributing 4,983,950 kWh and Thika Power's combined units providing over 11.3 million kWh.
Despite the significant contribution of geothermal and renewable energy sources to the national grid, fuel-powered electricity generation continued to exert pressure on consumer tariffs.
In June, Olkaria IV contributed 92,790,230 kWh, while Olkaria I Units IV and V added 91,894,900 kWh, with both operating at a steam charge of 2.59 KSh/kWh.
However, the reliance on thermal plants during periods of high demand continues to drive up the fuel energy cost charge.
Foreign Exchange Losses Push Up Electricity Bills
EPRA also attributed part of the tariff increase to exchange-rate losses incurred by foreign exchange sector players during June, resulting in a Foreign Exchange Fluctuation Adjustment of plus 148.41 cents per kWh for July 2026 readings.
Pursuant to Clause 2 of Part III of the Schedule of Tariffs 2023, all prices for electrical energy specified in Part II of the said Schedule will be liable to a Foreign Exchange Fluctuation Adjustment of Plus 148.41 Cents per kWh for all meter readings taken in July 2026.
The sector recorded a total foreign exchange loss of approximately KSh 1.63 billion, with Independent Power Producers accounting for the largest share.
Kenya Power and KenGen also registered forex-related losses, which were incorporated into the adjustment formula approved by the regulator.
During the June period, Kenya Power and Lighting Company (KPLC) accounted for KSh 558,054,635.48, while KenGen's portion was relatively smaller at KSh 65,110,883.39.
Revised charges to the forex sector are intended to compensate utilities and generators whose obligations and contracts are partly denominated in foreign currency, according to the Authority.
These foreign exchange losses are largely tied to dollar-denominated loans, imported equipment, and fuel purchases used in electricity generation.
With the Kenyan shilling continuing to face pressure against major international currencies, the forex adjustment has become a recurring feature on electricity bills.
Inflation Adjustment Introduced for Six-Month Period
In addition to fuel and forex charges, consumers will pay an inflation adjustment for the period July to December 2026. A further Ksh0.48 per unit will be charged through the Inflation Adjustment, which EPRA said was necessary to recover increased operating costs linked to inflation.
EPRA noted that the adjustment reflects rising operational and power procurement costs across the electricity sector.
The calculation is based on total escalated costs exceeding KSh 3.3 billion, covering Kenya Power, KenGen and Independent Power Producers.
In the KSh 3.3 billion, the cost escalation amounts to KSh 1.64 billion for KPLC, KSh 1.11 billion for Independent Power Producers, and KSh 751 million for KenGen.
A previous under- and over-recovery adjustment was also factored into the formula, amounting to KSh 156,190,394.96.
The inflation adjustment will apply from July to December 2026, meaning consumers should expect this additional charge to remain on their bills for the next six months.
This adjustment is separate from the base electricity tariff approved by the regulator and is reviewed monthly in line with fuel costs, exchange rate movements and other statutory charges provided for under the tariff schedule.
Water Resource Management Authority Levy
Consumers will also continue to contribute to water resource management through the WRMA levy, which applies to electricity generated by large hydropower stations.
According to EPRA, the tariff includes a WRMA Levy of an additional 1.57 cents per kWh for July, citing that in June Kenya's hydro plants generated a total of 345,653,273 kWh.
EPRA clarified that major hydropower facilities, including Kiambere, Gitaru, Turkwel and Kamburu, accounted for a significant portion of the electricity purchased in June and formed the basis for the tariff adjustment.
The levy was calculated using electricity purchased from major hydropower plants, including Gitaru, Kiambere, Kamburu, Kindaruma, Masinga, Turkwel, Sondu Miriu and Sang'oro during June.
What This Means for Your Monthly Bill
The combined adjustments mean a consumer using 100 units of electricity in July will pay about Ksh518 more before adding the normal electricity tariff, taxes and other statutory charges.
The fuel charge accounts for the largest change at Ksh3.14 per unit, followed by the forex adjustment at Ksh0.72, bringing the total additional cost to Ksh3.87 per unit on electricity bills after including the WRMA levy.
With VAT at 16 percent, the Rural Electrification Programme levy, and the EPRA levy added on top, your effective total cost per unit is pushing Ksh28 to Ksh32.
This means for a typical household consuming 200 units per month, the electricity bill could increase by over Ksh1,000.
The monthly adjustments are separate from the base electricity tariff approved by the regulator and are reviewed every month in line with fuel costs, exchange rate movements and other statutory charges provided for under the tariff schedule.
As a result, the new charges will apply to all electricity consumed during the July billing cycle, meaning households and businesses alike will feel the impact.
Looking Ahead
The government has previously frozen a planned increase in electricity prices from July 1 amid fears of sparking outrage ahead of the elections. However, these pass-through charges - which include fuel costs, forex adjustments, and inflation adjustments - move independently of any tariff review and will continue to affect consumers' token value regardless of the base tariff freeze.
Energy Cabinet Secretary Opiyo Wandayi had said the government deliberately took measures to cushion consumers and businesses from rising energy costs, noting that effective June 2026, electricity costs had reduced by KSh0.2685 per kWh.
However, the July adjustments have reversed this trend, with consumers now facing significantly higher bills.
As Kenyans brace for more expensive electricity, many will be watching to see whether the government can deliver on its promise of cheaper power through alternative energy sources.
For now, households and businesses must prepare for higher electricity costs as EPRA continues to adjust tariffs in line with market realities.
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