Government Withdraws Electricity Tariffs Review, Stopping Costs Escalation

Kenyans can breathe a little easier. Energy Cabinet Secretary Opiyo Wandayi announced on Wednesday, June 3, that the Ministry of Energy and Petroleum has officially withdrawn the retail electricity tariff review application submitted by Kenya Power on March 31 thus effectively killing a proposal that would have pushed power bills even higher.

The application had sought a full review of retail electricity tariffs, with KPLC citing operational needs. Almost immediately, pushback came from every corner household, small businesses, manufacturers, and the construction sector all flagged the same worry: another hike would be unbearable. Wandayi confirmed the withdrawal followed consultations across government and direct engagement with stakeholders, stating that the decision "reflects the need to buttress a sustainable energy sector while protecting households, businesses, and industries from cost escalation."

The timing matters. 2026 has already been punishing for electricity consumers. In January, EPRA raised costs by roughly KSh 5.52 per kWh. Then in April, more charges landed a Fuel Energy Cost Charge of 347 cents/kWh, a new Water Resource Management Authority levy, and foreign exchange adjustments that alone cost the system over KSh 1.3 billion in March. Some consumers saw their April bills jump by as much as 30%. Approving yet another increase on top of all that would have been politically explosive, and the government clearly read the room.

Small and medium enterprises stand to benefit the most from this reprieve. Many operate on thin margins where electricity is one of the biggest overhead costs one more hike could have forced closures. Construction firms running major infrastructure projects and manufacturers planning investment also gain the cost certainty they desperately need.

Wandayi reassured the public that the withdrawal won't affect electricity delivery as consumers continue receiving power under the current tariff structure, which remains in force unless lawfully reviewed through the full process laid out in the Energy Act, 2019. That means EPRA evaluations, stakeholder consultations, and public participation before any future changes get approved.

This isn't a permanent freeze, though. The government hasn't ruled out a future review it has only withdrawn this specific application. A revised proposal could resurface. But for now, the message from Nairobi is clear: tariffs aren't going up through this process. Not without broader consensus, and certainly not without a stronger case than the one Kenya Power put forward in March