Kenyans to Pay Higher Electricity Bills in July 2026 as EPRA Raises Fuel, Forex and Inflation Charges
Kenyans are set to pay higher electricity bills for the July 2026 billing cycle after the Energy and Petroleum Regulatory Authority (EPRA) approved increases in fuel, foreign exchange, inflation and water resource adjustment charges.
The revised monthly adjustments, published in a series of Kenya Gazette notices dated July 10, will add approximately Sh5.18 per kilowatt-hour (kWh) to electricity costs before the base tariff, taxes and other statutory levies are applied.
The monthly adjustments are reviewed under the Schedule of Tariffs 2023 and vary depending on changes in fuel prices, exchange rates, inflation and other regulatory costs.
Fuel Cost Adjustment Records the Biggest Increase
The largest increase comes from the Fuel Energy Cost Charge, which has been set at 320 Kenya cents (Sh3.20) per kWh for all electricity meter readings taken in July 2026.
EPRA said the adjustment reflects the cost of electricity generated using thermal power plants during June.
“Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2023, notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of plus 320 Kenya cents per kWh for all meter readings to be taken in July, 2026,” EPRA said.
According to the regulator, the charge factors in electricity generated by thermal power producers including Rabai Power, Iberafrica and Thika Power.
Foreign Exchange Adjustment Pushes Bills Higher
Consumers will also pay a Foreign Exchange Fluctuation Adjustment of 148.41 cents (Sh1.4841) per kWh, reflecting changes in exchange rates that affect payments to electricity generators and suppliers.
EPRA explained the adjustment in a separate Gazette notice.
“Pursuant to Clause 2 of Part III of the Schedule of Tariffs 2023, notice is given that 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,” another Gazette notice states.
Inflation Adjustment and Water Levy Also Approved
In addition to fuel and forex charges, EPRA approved an Inflation Adjustment of Sh0.48 per kWh, which will apply from July through December 2026.
The regulator said the adjustment is intended to recover increased operating costs associated with inflation.
Consumers will also continue paying a Water Resources Management Authority (WRMA) levy of 1.57 cents per kWh, which supports water resource management linked to hydropower generation.
The levy is calculated using electricity generated from major hydropower stations including Gitaru, Kiambere, Kamburu, Kindaruma, Masinga, Turkwel, Sondu Miriu and Sang’oro.
How Much More Will Consumers Pay?
Combined, the four adjustments will add approximately Sh5.18 per kWh to electricity bills before the base tariff, VAT and other statutory charges are applied.
For a household consuming 100 units of electricity, the adjustments alone will increase the monthly bill by about Sh518, excluding the base electricity tariff and taxes.
Businesses are also expected to face higher electricity costs during the July billing cycle as the revised charges take effect.
Monthly Charges Separate from Base Electricity Tariff
EPRA noted that the monthly adjustment charges are separate from the approved electricity tariff and are reviewed regularly to reflect changes in fuel prices, foreign exchange movements, inflation and other statutory costs.
As a result, both households and businesses should expect higher electricity bills for power consumed during the July 2026 billing period.
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