Kenya Power has recently explained that despite a year-long decline in electricity costs, this trend is set to reverse due to a dispute between the utility company and Nairobi County Government. The disagreement is expected to increase the cost of electricity for customers.
During a meeting with the Kenya Editors Guild in Nairobi on Tuesday, March 4, Kenya Power’s Managing Director, Joseph Siror, outlined that the past year had seen a reduction in the cost of electricity, largely due to the strengthening of the Kenyan shilling against the US dollar. This shift has reduced the pass-through costs, which are costs passed down to customers from the utility company. Siror pointed out that the base tariff had dropped from Ksh 19.04 per unit in 2023 to Ksh 17.94 per unit in 2024.
“This decline has been further supported by the reduction in the base energy cost following the tariff review conducted in April 2023. The review established a three-year tariff plan, designed to gradually lower the cost per unit every year, starting in July,” Siror said. He noted that the cost had dropped from Ksh 19.04 per unit in 2023 to the current Ksh 17.94 in 2024.
However, Siror expressed concerns over the potential addition of wayleave charges to electricity bills, which could lead to a significant increase in electricity prices—by as much as 30%. “Kenya Power manages over 319,000 kilometers of power lines spread across all 47 counties in the country. The proposed wayleave charges, set at Ksh 200 per meter of electricity infrastructure, would have a major impact on retail electricity tariffs,” Siror explained.
These wayleave charges would generate a massive Ksh 63.8 billion annually, which represents nearly 30% of the revenue needed by the energy sector. This cost would inevitably be transferred to consumers, making electricity unaffordable for many Kenyans, Siror added.
The conflict that has led to the proposed wayleave charges stems from a public row between Kenya Power and the Nairobi County Government. The dispute began when Kenya Power disconnected the county government’s offices from the power grid over an accumulated debt. In retaliation, the Nairobi County Government, led by Governor Johnson Sakaja, resorted to actions such as dumping garbage, clamping vehicles, and demanding that Kenya Power pay for wayleave charges.
Sakaja, in a statement to the press, argued that Kenya Power owed the Nairobi County Government a substantial Ksh 4.9 billion in unpaid wayleave fees.
Surge in Power Demand
In related news, Kenya Power recently reported a significant increase in electricity demand. The utility company recorded a peak demand of 2,316 megawatts (MW) on February 12, 2025, setting a new record. This represented an increase of 12 MW from the previous peak demand of 2,304 MW on January 15, 2025.
Kenya Power attributed the surge in demand to ongoing investments in the National Grid’s stabilization and the completion of key infrastructure projects. Data from the company’s National Control Centre revealed that peak electricity demand has been steadily increasing over the past three years, with the growth rate accelerating notably in 2024.
“In the past, it took almost two years for peak demand to grow by 200 MW. However, since June of last year, the demand has increased by over 116 MW, with an average monthly growth of 14.5 MW over the last eight months,” Siror added. This upward trend in power consumption highlights the growing need for reliable electricity infrastructure across the country.
Join Gen z and millennials TaskForce official 2025 WhatsApp Channel To Stay Updated On time the ongoing situation https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
